Activision gains independence through Vivendi deal
Activision have secured their independence from owner Vivendi, having purchased 429 million shares from the French multinational mass media and telecommunication company for a meagre $5.83 billion.
Alongside this, Activision CEO Bobby Kotick and co-chairman Brian Kelly have formed tan investor group that has seen them acquire 172 million shares for an additional $2.34 billion, with financing secured from companies including Davis Advisors, Leonard Green & Partners, L.P. and Tencent.
Vivendi still own an approximated 12 percent share within the company, whereas Kotick’s group of investors have carved a 24.9 percent stake.
“These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi,” Kotick explained.
“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.
“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.”