Unless Activision Blizzard plans to move their HQ to China, having the US government talking about you in a very negative light is likely worse for them.
The playerbase for some of their games is apparently as high as 70% China-based [1]. We can't verify this, because Blizzard doesn't release that information publicly, but if even remotely true, losing access to the Chinese market would be financially devastating.
Blizzard does not release player numbers, but as a public company, they do release their financials.
Per Activision Blizzard's investor calls, approximately 10% of their total revenue is from China. So, with a profit margin of 25% and profits in the billions, Activision Blizzard is not going to go bankrupt even should they lose all their Chinese income.
But the Chinese government might. And that might be much worse for them.