Good morning, ladies and gentlemen. Welcome to the conference. Today's presentation is being recorded. I would now like to turn the call over to Amrita Ahuja, Senior VP of Relations.

Good morning and thank you for joining today's call. We have a lot of exciting news to share with you. First, our proposed acquisition of King, then Activision Blizzard third quarter earnings results, followed by Q&A. I'd like to remind everyone that during this call, we will be making statements that are not historical facts. These are forward-looking statements that are based on current expectations and assumptions that are subject to risks and uncertainties. These forward-looking statements include comments about our plans and expectations regarding Activision Blizzard's pending acquisition of King Digital Entertainment as well as our comments about our outlook and other future plans and expectations that we'll provide during the earnings report portion of this call. A number of important factors could cause actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements, including the factors indicated on the slide that is showing and those discussed in the Risk Factors section of Activision Blizzard's and King Digital Entertainment's SEC filings. In particular, all of our statements with respect to the expected impact of the acquisition are subject to the risk that the acquisition may not be completed or may not be completed on the expected timeline. The forward-looking statements in this presentation are based on information available to Activision Blizzard and King Digital Entertainment as of the date of this presentation. And while we believe them to be true, they may ultimately prove to be incorrect. The companies undertake no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after today, November 3, 2015, or to reflect the occurrence of unanticipated events. I would like to note that Activision Blizzard prepares its financial information in accordance with U.S. GAAP and King Digital Entertainment prepares its…

Thanks, Amrita. Over the last 25 years, we've demonstrated a consistent ability to identify opportunities to serve and support our audiences and deliver superior value to our shareholders. We're disciplined, deliberate and methodical whether in the developments of new franchises, entering new segments and geographies and perhaps most importantly identifying transactions with great opportunity for shareholder value creation. With respect to the latter, we've had very positive results and track records over the last 25 years, because we care deeply about how we allocate our capital and prioritize our opportunities. The way we considered King is consistent with our proven history of evaluating acquisition opportunities. King operates in a rapidly growing segment. They have a truly world-class management team, exceptional game development talent and great commercial instincts. The transaction is accretive, brings new audiences and the King corporate DNA is oriented towards great game-making with commercial potential. When we merged with Blizzard Entertainment, we found the right partner with extraordinary leadership. And when others dismissed the sustainability of Blizzard's incredible capacity for innovation, we were certain patience would be rewarded, and it has. We see a lot of the same characteristics today in King. We think now is the right time to enter mobile gaming in a meaningful way. Widespread mobile access around the world has opened up significant demand for engaging fun content that players can enjoy anytime, anywhere. By acquiring King, which has a proven ability to turn its games into iconic franchises, we will be a participant in the fastest-growing segment in gaming, a category that today is estimated to be $36 billion. It's still extremely fragmented, and we believe has great promise for the future. We also believe King's management team, including Riccardo, Sebastian and Stephane are some of the most talented executives in the game…

Thanks, Bobby. Under the proposed transaction, Activision Blizzard will acquire all of the outstanding shares of King for $18 in cash per share for a total equity value of $5.9 billion or an enterprise value of $5 billion, representing a multiple of approximately 6.4x King's estimated 2015 adjusted EBITDA. This transaction will be financed through a mix of offshore cash and fully committed debt financing. This will enable us to maintain a strong balance sheet and conservative leverage. Following today's announcement, our path to completion is subject to approval by the Irish High Court, the U.S., E.U. and other antitrust regulators as well as other customary closing conditions. In addition, the transaction is subject to a vote by King's shareholders. APEX and King management shareholders have committed to voting their shares in favor of the transaction. All in all, we expect the transaction to close by spring 2016. Once the transaction closes, King will operate as an independent operating unit of Activision Blizzard, similar to how Blizzard Entertainment operates. We have an excellent track record of integrating with minimal disruption and in a way that maintains the organization's culture, creative independence and ability to really thrive. As Bobby said earlier, King's management team has been integral to their success. Riccardo, Sebastian and Stephane will continue to lead the business and they've all signed long-term contractual commitments. We think this acquisition is an exciting opportunity for everyone connected to Activision Blizzard and to King. This is a very compelling transaction from a financial perspective. Together, we'll have more diversified and recurring revenues, a strong balance sheet and strong liquidity. King's shareholders will also be getting a 20%-plus premium to the recent share price and liquidity. And we'll be able to speed up our ability to capitalize on meaningful long-term growth opportunities.…

Thank you, Thomas. I would like to share a little about King, especially for those who are [indiscernible] company. King is a leader in mobile gaming and has been developing games since 2003. We have created a strong organization with 12 studios in Europe, Asia and the U.S. that are driven by dedicated world-class talent. King has a portfolio of best-in-class franchises that includes the top grossing games within their subgenres. Our 4 franchises: Candy Crush, Farm Heroes, Pet Rescue and Bubble Witch are category-leading brands. We operate them as a life service and continually give our players new highly engaging content by adding new levels, time-based live op and expansions with innovative modes of play. We also launched new games within our existing franchises. Candy Crush Soda Saga is our highly successful sister title to the original hit, Candy Crush Saga. We have seen that these efforts have transformed our games into true game franchises. In third quarter 2015, more than 3 years after the original launch of Candy Crush Saga, an average of 92 million people played Candy Crush games every day. The popularity of our games and success of our monetization and franchise strategy have translated to a leading position in the mobile gaming business. We have had 2 of the top 5 grossing games on the Apple App Store and Google Play Store in the U.S. for 3 consecutive quarters, and at least 3 of the top 15 grossing games for 7 consecutive quarters. We have built one of the largest networks of mobile game players with 474 million monthly active users in Q3, who played 1.4 billion games per day. Our network is a key asset for launching new games through cross promotion. We are excited about what we bring to the combined company. We…

Thanks, Riccardo. As Bobby, Thomas and Riccardo mentioned, we're incredibly excited to be combining the capabilities and portfolios of our companies together. This transaction enhances Activision Blizzard's current position as the most profitable, stand-alone interactive entertainment company. We expect accretion to 2016 estimated non-GAAP revenues and earnings per share of approximately 30% based on IBES consensus estimates. The transaction is also significantly accretive to 2016 estimated free cash flow per share. We'll be combining Activision Blizzard's trailing 12-month non-GAAP revenues of $4.7 billion with King's trailing 12-month adjusted revenues of $2.1 billion, and combining Activision Blizzard's adjusted EBITDA of $1.6 billion with King's $0.9 billion over the same period. Importantly, the accretion figures detailed in this presentation do not include potential synergies that could come from cross promotion and shared capabilities for the combined company. Activision Blizzard's business today generates the bulk of its revenues from its high-performing console and PC businesses, which as we will discuss during our Q3 earnings report, continue to perform very well and are increasingly shifting to high-margin digital channels with increasingly long tails of player engagement and monetization. King generates virtually all of its revenue from high-margin digital platforms with the vast majority of it on mobile. The industrial logic of combining these businesses, bringing leadership in gaming across PCs, consoles and mobile platforms is highlighted by the balanced post deal revenue mix of roughly 1/3 coming from each of these platforms. In addition, the combined company will be an online services business with roughly 2/3 of the combined revenue being delivered digitally. One of the things we've learned from our Blizzard merger is that a broader IP portfolio across more platforms creates a diversified and highly profitable financial profile, which in turn provides us with more capital to reinvest in innovation and to…

Thank you, Dennis. I will now turn to Activision Blizzard's earnings results for the third quarter of 2015. Our strong results reflect our strategic focus on expanding our franchise portfolio with innovative new intellectual property, broadening our reach by expanding on to new platforms and geographies and driving deeper engagement through regular content updates that delight our audiences. We outperformed our Q3 targets on revenues, digital growth and earnings per share, and we are raising our full year outlook yet again. We project year-over-year revenue and EPS growth as constant FX. We'll continue to invest in our franchises through the holiday to build our installed base, given the increasing opportunity of backend revenues. This investment sets us up for continued organic growth in 2016 and beyond. And of course, the addition of King to our portfolio presents additional opportunities for growth ahead. As we successfully transition from a large to a year-round engagement model, our audience base and the total amount of time people spend with our franchises continue to grow. In the third quarter, our monthly active users grew by 27% year-over-year and the amount of time our communities spent playing Activision Blizzard's games grew by 23% year-over-year. Our audiences yet again logged nearly 3.5 billion hours of game play in the quarter, not including rapidly growing hours spent spectating. You will hear more about our strategic initiatives at Investor Day later this week at BlizzCon, where you will also get to see some of the industry's most exciting eSports championships. We look forward to seeing you there. And now I will turn the call over to Eric to discuss Activision Publishing's results.

Thanks, Thomas. Activision Publishing delivered another record quarter with record non-GAAP operating income, which at constant FX, was up by over 50% versus last year's Q3 performance. We also drove monthly active users up by 17% year-over-year, continued to have 3 of the top 5 next-generation games live to date and have the largest digital revenues in our history both in Q3 and year-to-date. Our results are due to our proven ability to turn great games into long-term franchises with large passionate communities. We've strategically and methodically expanded our portfolio to include 3 such industry-leading franchises, each of which gamers enjoy playing year-round. We've also just relaunched what we hope could become our fourth major franchise with Guitar Hero Live. We're only 2 weeks in, but early reception from fans and critics has been very positive. While sell-through comparisons to prior games from 5 years ago aren't exactly apples to apples, our current sell-through is significantly up versus each of the prior 2 Guitar Hero titles. As you know, unlike past games, we also designed Guitar Hero Live to be a living platform to keep players engaged. And so far, people are responding well, with average engagement per player reaching nearly 2 hours per day. The game has also been featured in a wide array of the most influential must-have holiday toy lists. All that said, it's still very early and we anticipate that this title will ramp towards the holiday, which is why we have over half of our marketing investment this year, still yet to come. Moving on to Destiny. We launched the Taken King in September with our partners at Bungie to an extremely positive reception from fans and critics. Day 1 downloads broke Sony PS4 records. Day 1 engagements saw the highest number of active players…

Thank you, Eric. Q3 was another strong quarter for Blizzard. We had significant activity across our franchises and our MAUs for the quarter were up 50% year-over-year. Blizzard continues to be well positioned for growth. We're operating more franchises on more platforms and in more regions than ever before. We have an exciting upcoming content slate and we're continuing to foster powerful connections with our community online, through our pro and amateur eSports programs and at live events like BlizzCon. Hearthstone, in particular, had another great quarter, driven by the launch of The Grand Tournament expansion. Along with continued strength on mobile and continued strong performance in all markets, the new expansion helps push engagement for Hearthstone even higher in Q3 than in Q2. Year-over-year, engagement was up 77% leading to Hearthstone's highest ever quarterly revenue. In addition, we recently launched a fully localized version of Hearthstone in Japan. The game already had an established audience in Japan. So we were pleased to provide them, as well as new players, with a version that makes access even easier. Activity around Hearthstone eSports is also continuing to grow and drive excitement. Over the past few months, we concluded several tournaments feeding into the world championship at BlizzCon. For World of Warcraft this quarter, we released a key update, which helps maintain stability in the subscriber base and we're currently at work on the next update. We also had very exciting news at Gamescom with the announcement of World of Warcraft: Legion, our next expansion. Players responded very positively, not only to the new features coming with the expansion, but to the care we're putting into the content. In addition to hosting the World of Warcraft, Arena Championship, we'll have more to share on Legion at BlizzCon this week. On the StarCraft…

Thanks, Mike. I will now review our better-than-expected Q3 financial results and our raised outlook for Q4 and the full year 2015. Unless otherwise indicated, I will be referencing non-GAAP measures, so please refer to our earnings release for full non-GAAP to GAAP reconciliations. For the quarter on a GAAP basis, we generated revenues of $990 million, up 31% year-over-year and operating margin of 20% and GAAP EPS of $0.17, up $0.09 versus our August guidance. For the quarter on a non-GAAP basis, we generated revenues of $1.04 billion and operating margin of 24%, up 190 basis points year-over-year and EPS of $0.21. We outperformed our August guidance by $110 million on revenue and $0.07 on EPS. At constant FX, our year-to-date revenues are up 5% ahead of last year and EPS is 35% ahead of last year, despite the tougher comp with last year's Diablo III expansion and Destiny's full game launch. Importantly, total digital revenues grew 38% year-over-year or 50% at constant FX to an all-time quarterly record of $697 million, a significant driver of that growth was sales from digital add-on content, which grew 60% year-over-year or 75% at constant FX. Our digital full game downloads also grew 39% year-over-year or 48% at constant FX, largely driven by the Destiny expansion launch. There are a few key franchise drivers worth highlighting. Hearthstone had its highest revenue quarter yet with the launch of its expansion, The Grand Tournament in August. Destiny's operating income grew by a double-digit percentage year-to-date on the back of the launch of The Taken King in September. Skylanders SuperChargers launched to great fan and critical reception though into a more competitive landscape. Activision's Call of Duty and Blizzard's Diablo III and Heroes of the Storm continued to perform well and attract new players. And…

[Operator Instructions] And we'll go to our first question from Chris Merwin of Barclays.

In the last couple of years, I guess, the revenue mix for Activision has been evolving more towards a predictable model with free-to-play games and we've seen very good improvements in engagements for console and PC games, and then mobile as a category historically has had different characteristics in terms of the life of games and engagement. So can you talk about the plan for creating even more predictable revenue streams on mobile? And how you can drive consistent engagement and monetization with those mobile games, much as you've done very successfully on other platforms?

Well, I think I'll let Riccardo get into more details. But upfront, I think we've got to recognize King has already a fantastic track record of continuing engagement. Riccardo mentioned some of the incredible number of games people play every day, almost 100 million people coming to King to play their games every day. I think they have a tremendous track record and we really only got full appreciation of that as we spent a lot of time over the last 2 months going with Riccardo and his team through their business, the analytics that they built and the sophistication that their game developments have built in order to make the games fun to play, engaging, rewarding for players and that's why you see the strong performance that they have put on. And we don't see any reason for that to change. If anything, we think there's opportunity for that to continue to grow and expand, as the teams get stronger and as we will be able to share our very complementary expertise that we have built over decades of being in this business.

I think one of the things you'll realize from the combination is that with now over 0.5 billion players in our network, there is an insatiable demands for great content. And so now the model is going to start to shift across all of the categories to be able to deliver continuous content and that should be helpful for more consistent monetization.

And we'll go to our next question from Doug Creutz of Cowen and Company.

In your comments, you said you're not assuming any synergies from the deal. But maybe could you talk about what opportunities you think there might be for synergies, especially on the cost side?

Yes. So I think from a financial perspective obviously, the deal is already very attractive without the assumption of any synergies delivering 30% accretion, and that's with an assumption of the deal only closing by spring. So on a full year basis, that would be even better. Now we do think, there are obviously opportunities. We talked a lot about already, how complementary our relative skill sets are. And Bobby just mentioned the incredibly large size of the network overall. And therefore, we are broadening our audience reach, which I think will give all of our franchises a broader access to more people in more geographies, particularly in some of the fastest geographies like Asia. And I think the same is true vice versa. I think we have a lot of experience in how to build franchises and grow franchises over time. And I think some of those skills will be helpful, as King continues to grow and mature as a leader in mobile gaming.

I think one of the other things that we obviously are not reflecting in our discussions today, but it's an important point. If you look at the history of Activision Blizzard, we go back to our founding in 1979, whether it's Infocom, Dynamics, Sierra, Activision, Imagic. We have the largest library of intellectual property in games that exists in -- from any company. And a lot of that intellectual property, you look back in its history, there are tens and tens of millions of players who have experienced those franchises. With mobile, we now have the opportunity to reach new players in 196 countries around the world and take a lot of that great content that we've built over 35 years and create new content or leverage that content against this new opportunity.

And we'll hear next from Neil Doshi of Mizuho.

Bobby, will you guys be investing in King? Or will King be primarily responsible for funding its own initiatives? And then Mike, on over -- can you provide any update on Overwatch? It looks like the game will lend itself well for eSports. So if you can provide any color on the eSports front for Overwatch? And then how we should be thinking about the distribution strategy going forwards, that'd be great?

So from an investment perspective, King will, like Activision and Blizzard, operate as an independent unit and they'll generate their own capital. That capital will be available to them to invest against their business opportunities. One of the big benefits, I think they'll get is plugging into the great framework that we've created for long-term strategic planning and that includes capital allocation. Remember, King generates a lot of operating profit. In fact, more operating profit than virtually any other game company that has ever existed. And so they'll be able to continue to generate that operating profit and invest that cash flow into opportunities.

Okay. And on the Overwatch questions, we just entered beta. Feedback from the beta has been extremely positive. On the eSports question, I think that Overwatch has a lot of potential with eSports. We've done some experimenting internally at Blizzard with our own sort of show matches internally at the company. It's very fun to watch. But in terms of announcements about business model or distribution, we're not ready to talk about that today. We'll have more information about Overwatch at BlizzCon.

And moving on, we will go to a question from Arvind Bhatia of Sterne Agee.

My question is on Guitar Hero. I appreciate the color and the comparison to the first 2 franchises in the game's history. Just if you could maybe refresh our memory on the size of the performance of the original game in the first few years? And then just maybe any kind of quantification, if possible at retail for Guitar Hero, the new one that's just come out?

Obvious the prior games were the first to reach $1 billion of any video game franchise. So the performance was very strong commercially at its apex. And as I said, the new games sell-through and week 1 is up significantly versus the last 2 games. But as I mentioned, those are 5-year-old comparisons, so not exactly apples-to-apples. I think the more relevant factors right now are the fact that we've designed these games, the first time for a Guitar Hero game to really have a long tail of engagement with Guitar Hero TV, the world's first playable music video network. We're seeing 2 hours per day engagement from players, who've already purchased the game and it's going to be a holiday-centric title and we expect to see it ramp during the holiday and we've got over half of our marketing budget yet to go for the year because of that.

And we will hear next from Eric Sheridan of UBS.

Maybe a bigger picture question for Bobby and the team around capital allocation going forward. With so many choices now between the various divisions as well as sort of the debt holder and equity holder desire to get capital back with deleveraging, maybe just think bigger picture about where capital incrementally is going to get allocated 2016 and beyond in sort of rank order those opportunities?

Sure. Thanks, Eric. Obviously, having a strong balance sheet and having access to capital has been a critical and important part of our strategic plan and our process. We've always tried to be very balanced regarding capital allocation. We have significant, obviously, capital to be able to invest in our business and invest in new opportunities, whether that be inside the Activision business, the Blizzard business or in the future in the King business. And really the greatest governor in that investment is usually related to great development talent and great ideas, and then we try and be disciplined about how we put that investment against those ideas internally. As it relates to other capital allocation, now obviously taking on a little bit more debt, our near-term priority will be on deleveraging in line with our investment-grade profile. Our dividend payout is expected to be largely consistent with our historical approach. And in the short term, the $750 million share buyback authorization will likely not be utilized under current plans. So we feel like we have significant, obviously, capital resources to be able to invest in our business and still return capital to -- and balance the needs of our various stakeholders.

And so we'll go to our next question from Ben Schachter of Macquarie.

Guys, a few questions. One, are there particular new franchises in the King pipeline that you think are important drivers? Or is this more about the long-term value of the current franchises? And then Bobby, can you just talk about how the success of Hearthstone on mobile may have influenced this deal and your overall thinking of mobile gaming?

Sure. So it's both. I mean, we're having our earnings call tomorrow, so you will hear more details tomorrow. But fundamentally, what we have announced in the past is that we are working on all the key franchises we have with basically sequels and sister titles. And we announced that by the end of 2016, it will be at least 3 new titles coming out. And of course, at the same time also for people who are working on new things, so the target is also to over time crystallize new franchises.

So I think the thing that always drives us, Ben, is can we really creatively and in an inspired way figure out new opportunities to delight and engage our audiences. And mobile is allowing us to do that. I think, certainly, Hearthstone's success, which has been extraordinary, was a catalyst for us to think about the opportunities differently. And when you look at 196 countries being served by King's footprint and the network of over 400 million players, our intellectual property that goes back to 1980, we really thought that there was a great opportunity. And you now see mobile is a $36 billion market that's growing faster than almost any category. I think the most important thing though was that we thought that creatively, we could see sustained franchises that would have perpetual value, where we could continuously put our best creative foot forward.

At this time, we'll go to our next question from Brian Pitz of Jefferies.

In the prepared remarks, you mentioned the cross-promotional opportunity, any additional color on that point? What games might be candidates near term to promote into King's network? And then separately, any comments on the need to acquire versus build a mobile studio. Clearly, you guys have a great development team. But just want to hear your thoughts on thinking through that decision longer-term?

[indiscernible] I'll take the second part of the question. They've built the best mobile company in the world. And with that network with hundreds of millions of people, with incredible expertise, with inspired creative talent in all of their studios, as much as we could invest on our own, we couldn't as quickly or probably in that quality get to the place that Riccardo and his team have gotten to. So it's a perfect complement to what we do already so well in the categories that we operate in.

And something in terms of the network composition, if you look at the composition of our network on the free playing side, it's about 60% female, 40% male. But if you then look at the paying side, it's much more accentuated oriented towards female audience and this is where one of the big opportunities here is to not only retain better, but in particular to monetize better audience and continue to build out further our network with games, which have a more focus on males, and that's where I think the opportunities are to tap into the amazing IP portfolio of Activision Blizzard.

And with 0.5 billion players now in our network, our audience members as we like to think of them, there is a lot of opportunity to distribute content to that 0.5 billion player network. And we haven't really announced a lot of the future plans. But some of the things that we've announced recently, you'll see tied very well into what the opportunity is to look at that network and continuously deliver new content to players around the world.

And we will go to our last question from Drew Crum of Stifel.

So I want to follow up on an earlier question on King. Just you talk about plans to accelerate the rate of content or game output going forward? And then separately, I think there's been some discussion around Destiny favoring microtransactions going forward. And based on the experience you had with the Taken King, can you talk about the strategy with DLC going forward? And can it, along with microtransactions, coexist with this franchise?

In terms of -- as I said -- I think, tomorrow, you will hear more details. But overall, I think we have a big pipeline of games lined up, a large focus of this pipeline is focused on our franchises with sequels and sister titles for our franchises and this is a multiyear plan. And then at the same time, we announced in our last earnings call that we are focusing on leveraging the massive network we have to enter new genres. So we have launched our first title in resource management, Paradise Bay and you will hear more details tomorrow on its performance. And we have also announced that next year, we're going to launch our first mid-core title. And then beyond that, in terms of what can we do with the new portfolio of IDs, I think that the work we start once the deal is closed with the teams sitting together and going through the opportunities which this presents.

And on Destiny, Drew, I think they're already coexisting. We had a full year of expansions to the game that have been very well received and sold quite well. And more recently, you've seen us introduce smaller in game purchases that allow people to customize their experience and express themselves and those have been very well received and it's sold well also. So I think we've already shown DLC and microtransactions can exist and that our community's hungry for more great content. As far as any shifts in strategy, I don't have any announcements today, but I think we have a lot of options at our disposal. And the reason for that, of course, is that we have such great engagement with this game. As I said, we're seeing average player times of 3 hours per day, which is really an astounding figure. And beyond that, we're also bringing in new players. I think our Legendary Edition going into the holiday gives players the best time ever to jump into the Destiny universe, because you get the original Destiny game, both the expansion packs and The Taken King for the price of a regular console game. So this has already brought a lot of new players in and we hope to see even more as we head into the holiday.

So great. So thanks, Drew, and thanks everyone for joining us this morning. We're obviously very excited about the new announcements today and welcome the whole King organization inside of Activision Blizzard. And we look forward to seeing many of you and hopefully speaking to many of you online this Friday at our Investor Day, which will be Friday morning Pacific Time at -- right before the opening ceremony of BlizzCon. So thanks, everyone, for joining us today.

And that does conclude the call. We would like to thank, everyone, for their participation today.