Activision Blizzard’s Multibillion Dollar Buyback from Vivendi Completed
Back in July, Activision Blizzard had announced that they would buy back a major chunk of parent company Vivendi’s controlling share in them. After leveling with a round full of lawsuits against them they have finally managed to do so.
The multibillion dollar transaction was halted back in September when numerous shareholders raised concerns about it to the high court. A day after the court case was settled; Activision Blizzard announced through a press release that the transaction had been completed.
“With the completion of this transaction we open a new chapter in the history of Activision Blizzard,” said CEO Bobby Kotick.
The details that were shared regarding the buyback include acquiring nearly 429 million shares along with certain tax attributes a cost of $5.83 billion from Vivendi – big money exchanging hands!
Apart from that massive exchange of power, the deal includes a separate transaction that will let them purchase 172 million shares back from Vivendi for a price of $2.34 billion in cash. On paper this will be done in the name of an investment group ASAC II LP which is headed by Kotick and Chairman Brian Kelly himself.
Now that it is all said and done the shareholding of Vivendi in Activision Blizzard, which previously was somewhere around 63 percent, has been reduced to merely 12 percent while another major shareholder in the form of ASAC II LP now owns 24.7 percent of the company.
“”We expect immediate shareholder benefits in the form of earnings-per-share accretion and strategic and operational independence. Our audiences and our incredibly talented employees around the world will benefit from a focused commitment to the creation of great games. Our shareholders and debt holders will have the benefit of an energized, invested, deeply committed management team focused on generating long-term, superior returns, and effectively managing our capital structure” Kotick commented.