Activision shares drop 10 percent after report of sexual misconduct investigation

Activision Blizzard saw its shares drop nearly 10 percent after a Reuters report about an internal investigation into allegations of sexual misconduct at the video game company.

The analyst firm MKM Partners cited the findings of the internal investigation as the primary factor behind the downgrade to sell from neutral.

“After an initial rally following the quarterly earnings report, we are lowering our 12-month target price on the shares to $57. This still represents 29% upside from current levels, but we believe investor euphoria has come ahead of a number of uncertainties that have materialized in the interim,” analysts wrote.

The investigation found that 37 current or former employees had made 30 allegations of sexual misconduct between 2015 and 2018.

Among those most seriously impacted were former Destiny director H. Jay Slaven, who took a buyout offer in October following allegations of inappropriate behavior during the game’s development period. Meka Coles, senior editor for the company’s market-leading Call of Duty series, also left the company following claims that he, along with others, had sexually harassed or bullied female colleagues. Former head of developer game studio, Ion Nedyalkov, also left the company over claims of inappropriate behavior.

Read the full story at Kotaku.

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