What Is Activision Blizzard Going to Do With $9 Billion in Cash?

With an adjusted operating margin above 40%, Activision Blizzard (NASDAQ: ATVI) is one of the most profitable companies in the world. Over the last four quarters, it generated $2.87 billion in free cash flow and ended the first quarter with $9.3 billion in cash on its balance sheet.

During the first-quarter earnings call in May, one analyst asked management about its plans with respect to mergers and acquisitions (M&A), especially since Activision's peers have been active in making deals lately. Management's response provided valuable insights on its approach toward capital allocation.

Let's look at what they had to say and what investors should expect.

Source Fool.com