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Acquisitions (Tables)
 6 Months Ended
Jun. 30, 2016
Business Combinations [Abstract]  
Schedule of Purchase Price
The total aggregate purchase price for King was comprised of (amounts in millions):
 
 
 
Cash consideration for outstanding King common stock and vested equity options and awards (1)

 
$
5,730

Fair value of King’s existing vested and unvested stock options and awards assumed (2)

 
98

Total purchase price
 
$
5,828


(1) Represents the cash consideration paid based on $18.00 per share to common stock holders of King and the fair value of King's existing vested options and awards that were cash settled at the King Closing Date for the portion of the fair value related to pre-combination services. No future services are required.
(2) Represents the fair value of King’s existing vested and unvested stock options and awards that were assumed and replaced with Activision Blizzard equity or deferred cash awards. The purchase price includes the portion of fair value related to pre-combination services. The fair value of the options and awards assumed was determined using binomial-lattice and Monte Carlo models with the following assumptions: (a) volatility of 36%, (b) time varying risk free interest rates based on the U.S. Treasury yield curves, (c) an expected life ranging from approximately 0.1 years to 7.6 years, and (d) an expected dividend yield of 0.9%. See additional discussion under "Stock-Based Compensation" below.
Schedule of Preliminary Purchase Price Allocation
The preliminary purchase price allocation was as follows (amounts in millions):
 
 
February 23, 2016
Estimated useful lives
Tangible assets and liabilities assumed:
 
 
 
     Cash and cash equivalents
 
$
1,151

 
     Accounts receivable
 
162

 
     Other current assets
 
72

 
     Property and equipment
 
57

 2 - 7 years
     Deferred income tax assets, net
 
27

 
     Other assets
 
47

 
     Accounts payable
 
(9
)
 
     Accrued expense and other liabilities
 
(272
)
 
     Other liabilities
 
(113
)
 
     Deferred income tax liabilities, net
 
(52
)
 
Intangible assets
 
 
 
     Internally-developed franchises
 
845

3 - 5 years
     Customer base
 
609

2 years
     Developed software
 
580

3 - 4 years
     Trademark
 
46

7 years
 
 
 
 
Goodwill
 
2,678

 
Total purchase price
 
$
5,828

 
Schedule of Pro Forma Financial Information
The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the King Acquisition, and any borrowings undertaken to finance the King Acquisition, had taken place at the beginning of the earliest period presented, nor does it intend to be a projection of future results.

 
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(in millions)
2016
2015
 
2016
2015
 
 
 
 
 
 
Net revenues
$
1,570

$
1,540

 
$
3,305

$
3,389

Net income
$
140

$
168

 
$
470

$
548

Basic earnings per common share
$
0.19

$
0.23

 
$
0.63

$
0.74

Diluted earnings per common share
$
0.19

$
0.22

 
$
0.62

$
0.73

The amounts presented represent the net revenues and earnings after adjustments for purchase price accounting, inclusive of amortization of intangible assets, share-based payments, and deferral of revenues and related cost of revenues.
 
For the Three Months Ended
 
For the Six Months Ended
(in millions)
June 30, 2016
 
June 30, 2016
 
 
 
 
Net revenues
$
458

 
$
641

Net loss
$
(49
)
 
$
(99
)