Activision-Blizzard buys out $8.2B of its own stock from Vivendi
Posted: 26.07.2013 06:26 by Comments: 8
A few weeks ago, Activision-Blizzard had been negotiating a buyout from its parent company Vivendi, which had been trying to sell the publisher.

Activision-Blizzard has purchased approximately 429 million shares of its own stock for $5.83B, while CEO Bobby Kotick and co-chairman Brian Kelly have personally purchased 172 million shares for $2.34B. All told, the company has given Vivendi $8.17B to gain its freedom.

Vivendi still owns 12% of Activision-Blizzard, which is hardly a majority share. Now that Vivendi has no controlling interest in Activision-Blizzard, it'll be interesting to see which direction the publisher goes in now.

According to Kotick, "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."

Activision-Blizzard will be hosting a conference call and live webcast on Friday, the 26th July at 8:30am EST (1:30pm GMT) to discuss the transaction.
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By nocutius (SI Elite) on Jul 26, 2013
A few more successful CoD games and it's all in the clear.
By SirRoderick (SI Elite) on Jul 26, 2013
So they basically bought themselves back? Interesting
By Gale47 (SI Core) on Jul 26, 2013
This reminds me of a dog licking his own balls. Seems legit.
By nocutius (SI Elite) on Jul 26, 2013
LOL :)
By JonahFalcon (SI Elite) on Jul 26, 2013
It means Vivendi can no longer make Activision-Blizzard do stupid things anymore.
By SirRoderick (SI Elite) on Jul 26, 2013
Yep, now they can do stupid things all by themselves! :D
By JonahFalcon (SI Elite) on Jul 27, 2013
You'd be surprised how many policies by Activision were mandated by Vivendi.
By Hammerjinx (SI Core) on Jul 30, 2013
Vivendi were planning on using their share leverage to make Blizztavision take out a loan to pay its shareholders big dividends (ie: Vivendi). This seems like the smarter move from the group.

I'd just like to point out; two individuals bought 2.34 *billion* dollars in shares between them. First world problems, amirite?