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.
“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.”