TechnesstivityActivision Splits From Vivendi In $5.83 Billion Buyout
On July 25th, 2013 Activision Blizzard announced the purchase of 429 million shares from owner Vivendi for $5.83 billion, dropping the shareholder from a 63 percent stake to just 12 percent by the end of the deal in September. An investment group led by Activision Blizzard CEO Bobby Kotick and co-chairman Brian Kelly will purchase a further 172 million Company shares for approximately $2.34 billion. The deal will conclude by September 2013 and will however incur approximately $1.4 billion in net debt as stated in their offcial statement.
At the end of the transaction Vivendi will no longer be a majority shareholder and Activision Blizzard will become an independent company with the majority of its shares owned by the public. Bobby Kotick will lead the company as Chief Executive Officer, and Brian Kelly as the new Chairman.
Bobby Kotick, CEO of Activision Blizzard, said
“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”
Mr. Kotick continued saying, ”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.”
