Andre Yoskowitz
26 Jul 2013 23:50
Activision Blizzard will become an independent company, buying back shares from Vivendi for $8.2 billion.
The company, the world's largest video game publisher, will purchase 429 million of its shares for about $5.83 billion in cash. Additionally, CEO Robert A. Kotick, co-chairman Brian Kelly and an investor group will purchase 172 million shares for $2.34 billion.
Vivendi will stay as a minority 12 percent owner, and Kotick and Kelly will keep their positions. Investors seem to like the plan, as Activision's stock jumped 16 percent today.
Activision, which makes blockbuster games like World of Warcraft and Call of Duty, will "emerge stronger" from the move, says Kotick: "We should emerge even stronger. 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."