Andre Yoskowitz
13 Oct 2013 18:09
Activision Blizzard has completed purchasing itself back from majority owner Vivendi after federal officials allowed the transaction to be completed.
The deal had been announced in July but was suspended in September after shareholders sued the company. Activision has purchased back 429 million shares for $5.83 billion.
In a separate transaction, an investment group led by Activision CEO Bobby Kotick and chairman Brian Kelly purchased 172 million shares for $2.34 billion.
With the purchase, the group now owns about 25 percent of the company. Vivendi will keep 83 million shares and a large 12 percent stake.
"With the completion of this transaction we open a new chapter in the history of Activision Blizzard," Kotick said in a statement. "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."