The PlaySide Studios Ltd (ASX: PLY) share price has continued its remarkable run on Thursday morning.
At the time of writing, the video game developer’s shares are up 18% to a record high of $1.42.
This means the PlaySide share price is now up over 250% since this time last year.
Why is the PlaySide share price rocketing higher?
Investors have been bidding the PlaySide share price higher today after it announced a deal with one of the world’s largest video game developers.
According to the release, the company has signed a 10-month fixed price work for hire agreement with Activision Blizzard, that will see PlaySide provide production, engineering and user interface development services to the video game giant.
Activision Blizzard is the company behind popular franchises such as Candy Crush, World of Warcraft, and Overwatch. It is in the process of being acquired by Microsoft for US$68.7 billion.
Management notes that this deal reflects its strategy of targeting larger contracts with AAA studios and important partners that have strategic significance.
It believes that developing a strong relationship with a major global brand such as Activision Blizzard through quality delivery and partnering will be a long term strategic benefit and reinforces its credentials as a global premier service provider in the industry. No financial terms have been disclosed.
PlaySide’s CEO, Gerry Sakkas, commented: “The Company is delighted to secure this contract with Activision Blizzard, one of the world’s largest game Developers and Publishers. Their portfolio of titles is a collection of some of the most prominent titles in the industry. PlaySide is very excited to be working with Activision Blizzard showcasing our AAA game development capabilities and this agreement is further recognition of the progress the Company has made on the global stage”
The post Why is the PlaySide (ASX:PLY) share price rocketing 18% to a new record high? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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