TheStreet.com had interesting article about Activision. They have announced a 4-to-3 stock split. Furthermore, they are calling a special shareholder meeting, in which they propose doubling the authorized share amount. This move, if accepted, will increase the amount of authorized shares from 225 million to 450 million. According to the article such a move typically points to the direction of acquisitions or management compensation.
The article doesn’t say it implicitly, but as the new accounting rule soon makes it expensive to grant options, this could mean that Activision has acquisition plans of its own. Playing field changed all of a sudden, again. What is it that Activision would like to buy? I would go for further mass on their home markets to combat Electronic Arts, so maybe THQ or Take-Two Interactive. This sure starts to feel like Christmas, so much to wait for.