Tweet
Activision Blizzard is slated to buy 439 million (that is 439,000,000) shares from Vivendi worth $5.83 billion. An investment group led by Kotick and Kelly will purchase the remaining 172 million shares at $2.34 billion.
As such, Activision Blizzard becomes independent of Vivendi's control and is free to call the shots without answering to a higher authority. It probably also means that the higher-ups at Activision Blizzard will pull in even more profits for themselves as they won't need to be split up to another company.
Bobby Kotick had this to say about the move:
"These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi.
"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."
"Our successful combination with Blizzard Entertainment five years ago brought together some of the best creative and business talent in the industry and some of the most beloved entertainment franchises in the world, including Call of Duty and World of Warcraft. Since that time, we have generated over $5.4 billion in operating cash flow and returned more than $4 billion of that to shareholders via buybacks and dividends. We are grateful for Vivendi's partnership through this period, and we look forward to their continued support."
"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."
"Our successful combination with Blizzard Entertainment five years ago brought together some of the best creative and business talent in the industry and some of the most beloved entertainment franchises in the world, including Call of Duty and World of Warcraft. Since that time, we have generated over $5.4 billion in operating cash flow and returned more than $4 billion of that to shareholders via buybacks and dividends. We are grateful for Vivendi's partnership through this period, and we look forward to their continued support."
The investment group will own 24.9% of the company. Kotick and Kelly will invest a combined $100 million. Vivendi, though not a majority owner any more, will still retain 12% of the shares for Activision Blizzard.
Comment