tl;dr
NetEase (NASDAQ:NTES) has renewed a publishing deal with Blizzard Entertainment, now part of Microsoft (NASDAQ:MSFT), bringing Blizzard's multiplayer games back to China. The deal, covering hit titles like World of Warcraft, Overwatch, Diablo, and Hearthstone, will phase in this summer. Additionally...
NetEase (NASDAQ:NTES) has renewed a publishing deal with Blizzard Entertainment, now part of Microsoft (NASDAQ:MSFT), bringing Blizzard's multiplayer games back to China. The deal, covering hit titles like World of Warcraft, Overwatch, Diablo, and Hearthstone, will phase in this summer. Additionally, the companies will explore bringing NetEase's titles to Xbox consoles and other platforms. Microsoft Gaming chief Phil Spencer expressed commitment to bringing Blizzard's games back to China and expanding titles on Xbox. Analysts estimate that the deal could lead to more favorable financial terms for NetEase, with Blizzard's return potentially adding up to 3B yuan ($415M) in yearly revenue, about 14% of its PC game revenues and 4% of total revenues in 2023. The new agreement also involves the potential for NetEase titles to be available on Xbox, including the success of its first Xbox title, Naraka Bladepoint, and upcoming multi-terminal titles. While the cost structure was not disclosed, it is speculated that the previous terms limited NetEase's profits due to high royalty fees. Analysts believe that better financial terms could lead to more game licensing opportunities in the future and better longevity for existing titles. Morgan Stanley rates NetEase as Overweight with a $135 price target, implying a 37% upside. Following the announcement, NetEase stock rose 3.8% on Tuesday but faced a 1.9% decline on Wednesday amid a broader market downturn driven by high inflation numbers.
More about NetEase Inc
NetEase Inc Summary
NetEase, Inc. offers online services focusing on gaming, communication, and commerce in China and internationally. The company is headquartered in Hangzhou, China.
Sector: Trade & Services
Industry: Business Services
Stock Symbol: NEC
Market Cap: 103.47B
Current Price: $135.51
PE Ratio: 15.95
EPS: 18.19
52-Week Low: $97.00
52-Week High: $160.84
Dividend Yield: 0.674
Beta: 0.07
More about Microsoft Corporation
Microsoft Corporation Summary Microsoft Corporation
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Stock Market Data
Sector: Technology
Industry: Services-Prepackaged Software
Market Cap: 316.74 billion
Current Price: $38.61
Change: $2.86 ( 11.04%)
52-Week Range: $30.61 - $0.363
Volume: 227,583,001
Average Volume: 460.92 million
EPS: $0.332
Dividend Yield: 0.176
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.