Activision Blizzard breaks free of Vivendi

[Harmzuay]

http://dealbook.nytimes.com/2013/07/...-vivendi/?_r=0

Activision Blizzard, the world’s biggest video game publisher, has a reached an $8.2 billion deal to separate from Vivendi and become an independent company.

Under a deal that was announced early Friday, Activision Blizzard and a group of investors led by the company’s management will buy back shares owned by Vivendi, the French conglomerate that controls the video game maker, leaving a majority of Activision Blizzard’s shares held by the investing public.

[Chickat]

NICE. They still retain 3b in cash 2.

[Deirhese]

Is this supposed to change the quality of the game or something?

[IIamaKing]

cool.

10chr

[Harmzuay]

Is this supposed to change the quality of the game or something?

It's pretty big news regardless.

[Axelond]

This is what they are using the hat money for?

[Azrile]

As far as I know ( and I own ATVI).. viviende had no management control over Activision Blizzard at all. They just owned a big chunk of it and probably had some seats on the BoD.. but were not involved in the mgmt of the company directly, and certainly not with Blizzard. Even Activision stays out of Blizzards face except at very high level things. ( Probably their engagment in China and those type of high level issues).

[CosmicGuitars]

Is this supposed to change the quality of the game or something?

It's more about preserving the quality of the games. Vivendi was attempting to set up a special dividend that would essentially drain Activision-Blizzard of it's money to pay off their colossal debt. It seems Bobby K. took advantage of this and bought their freedom in Vivendi's time of need.

[Dontrike]

In before droves of people say this is some end of the world thing and will make crazy accusations.

[CosmicGuitars]

In before droves of people say this is some end of the world thing and will make crazy accusations.

WORLD OF WARCRAFT IS DEA-.. oh.

[Kraenen]

now to break free of activision...

[Galaddriel]

Ouch, that had to hurt.

Last year Vivendi was willing to sell all their shares to Activision for 8.02 billion, now Vivendi will keep 12% ownership and get 8.2 billion while Activision shoulders 4.6 billion in debt.

Kotick looks like he's in pain.

[Slowpoke is a Gamer]

Outplayed, Vivendi. Outplayed.


Let's see what affect this has on future products.

[lordjust]

As far as I know ( and I own ATVI).. viviende had no management control over Activision Blizzard at all. They just owned a big chunk of it and probably had some seats on the BoD.. but were not involved in the mgmt of the company directly, and certainly not with Blizzard. Even Activision stays out of Blizzards face except at very high level things. ( Probably their engagment in China and those type of high level issues).

They owned the biggest chunk of its shares (over 80% of Blizzard and about 63% of Activision) and could have taken direct control of both companies but Vivendi didn't care for gaming. As long as they make money they are free to do whatever they want.

With this new deal Activion buys back shares of it own and from Blizzard which means that they finally own Blizzard Entertainment and can take control over things. I wonder if Activision actually will use their new power to change things in Blizzard. Blizzard still has a lot of cash and some private investors but I don't think they'll be as independent as today.

Activision could play it safe and let Blizzard do whatever they want and only focus on their own company or they could change some things. It really depends on the details of the deal. Which and how much shares does Activision buy and does Blizzard also buy back some of their own shares?

[Harmzuay]

Ouch, that had to hurt.

Last year Vivendi was willing to sell all their shares to Activision for 8.02 billion, now Vivendi will keep 12% ownership and get 8.2 billion while Activision shoulders 4.6 billion in debt.

Kotick looks like he's in pain.

1.4 billion of net debt after the deal closes in September, so it's not that bad.

[Slowpoke is a Gamer]

1.4 billion of net debt after the deal closes in September, so it's not that bad.

1.4 billion is worth it compared to the 3 billion and potentailly more.

[Chickat]

I dont foresee any note-able changes on the blizzard side of things. Hopefully Activison wont force itself upon them like CoughEABIOWAREcough.

[CosmicGuitars]

1.4 billion is worth it compared to the 3 billion and potentailly more.

Yeah. And how long until Vivendi would've wanted even more money?

[Normie]

now to break free of activision...

You mean for the incredibly profitable game company to break free of the other incredibly profitable game company.

[Schadow]

So now all we have to tell the Bli$$ard sayers that it was Vivendi that wanted money (clearly :3) and not Activision.

Now Activision's Iron Fist will rule across Blizz HQ, if I read it correctly, due to the fact they have a multitude of the shares (or at least, their voice count high).