Shares of Blizzard Entertainment surged to a record high on Wednesday after the world’s largest video game publisher named a longtime executive as its new chief executive.

Blizzard said Tim Sweeney was promoted to chief executive after longtime CEO Mike Morhaime stepped down to focus on project Overwatch. Sweeney will be succeeded by current chief operating officer Kristian Segerstrale.

One analyst said the transition showed Blizzard, which publishes the blockbuster blockbuster war game franchise “World of Warcraft,” could stick with its plans to turn the business into a subscription-based service model that requires players to invest time in games.

The announcement sent shares of Blizzard, a unit of Activision Blizzard Inc, soaring as much as 17 percent to $109.21, the highest in over two years.

“While investors may be questioning how long this transition takes to play out, the fact that the naming of Sweeney was made in advance indicates Blizzard is confident in its mission,” Rodman & Renshaw analyst Ashwin Shirvaikar said.

The new CEO, Sweeney, who started at Blizzard as a software engineer in 1987, has led development of a number of popular games including the Warcraft, Starcraft and World of Warcraft franchises. He started as the company’s chief development officer in 2003.

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