Activision Blizzard is going independent. The mega games publisher will buy itself back from Vivendi for over $8 billion, cutting…
Activision Blizzard is going independent. The mega games publisher will buy itself back from Vivendi for over $8 billion, cutting out the financially troubled French media conglomerate from its majority stake.
Bobby Kotick will remain CEO of Activision Blizzard, with Brian Kelly as Chairman.
The company will pay roughly $5.83 billion in cash for 429 million shares. Adding to that, Kotick and Kelly will purchase 172 million shares from Vivendi for $2.34 billion.
Vivendi will still own 12 percent of the company with 83 million shares.
“These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi,” Kotick said in a prepared statement. “We should emerge even stronger—an independent company with a best-in-class franchise portfolio and the focus and flexibility to drive long-term shareholder value and expand our leadership position as one of the world’s most important entertainment companies. The transactions announced today will allow us to take advantage of attractive financing markets while still retaining more than $3 billion cash on hand to preserve financial stability.”
Earlier this month, The Wall Street Journal reported that Vivendi, currently at a nine-year low stock price, was in talks to extract $3 million from Activision Blizzard, forcing the publisher to raise its debt.
Source: Activision Blizzard