Activision Blizzard completes buyback from Vivendi

CEO Bobby Kotick heralds the announcement as a "new chapter" in the World of Warcraft publisher's legacy.

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Activision Blizzard, Inc. on Friday completed its multibillion dollar share buyback from parent company Vivendi, one day after a high court cleared the way for the transaction to happen. The deal was originally announced in July and halted in September after multiple shareholders filed lawsuits against the company.

The previously announced deal includes the acquisition of approximately 429 million company shares and certain tax attributes from Vivendi for about $5.83 billion.

The deal also includes the purchase of approximately 172 million shares from Vivendi for $2.34 billion in cash in a separate transaction from an investment group--ASAC II LP--led by Activision CEO Bobby Kotick and chairman Brian Kelly

This investment group--which also includes Tencent, Davis Advisors, Leonard Green & Partners, L.P.--now owns around 24.7 percent of the company. Vivendi has retained 83 million shares, worth an approximate 12 percent stake in the company, while the majority of the remaining 690 million shares will be owned by the public.

"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."

Discussion

28 comments
Veenox
Veenox

And gamers won't benefit from all that shareholding shenanigans! But hey good job on being more fucking rich!

charlton3k
charlton3k

Hopefully we will see THPS 5 and Warcraft 4 soon!

mr_nee
mr_nee

That might be a new page on Activision branch, but I don't think anyone will notice any difference with turtle slow blizzard

Diegoctba
Diegoctba

Well, i'm waiting for Destiny, but at the same time, afraid of Activision to ruin the series, like what they did with Call of Duty, Guitar Hero and Tony Hawk.

vadagar1
vadagar1

lost my faith in Failzzard after the D3 BS 

Kinguard73
Kinguard73

Well question is Blizzard going to be independent enough to run their own show again or they too corrupted no matter what they do? Will we see an MMO version of this game for consoles? I hope so only way I'll go back to a blizzard game. Enjoying D3 a lot btw on consoles so I am hopeful. 

Pupchu
Pupchu

Guitar Hero 58 announced

Mr_Big_Boss
Mr_Big_Boss

Does this mean Activision will stop being so greedy and focus on making good games again?

FallenOneX
FallenOneX

This should be interesting, especially within the next two years.

Bloody_basic
Bloody_basic

guess activision is unhinged now. wonder what awaits for their future... hmm....

TheDarkNut
TheDarkNut

Now if Blizzard can buyback itself from Activision...

bernard978
bernard978

Prices to become even higher to make up for the cost of all this. This is the same publisher who thinks 25% off is a real sale.

In short, still not buying anything they publish at retail price.

pyro1245
pyro1245

wooo. operational independence. way to go

Trol1yFartsy
Trol1yFartsy

Well looks like the wife got the strap on now, it's time vivendi bend over

noirtenshin
noirtenshin

Hmm this sounds to me like a new WoW is being made (or some new IP). This way, the AB is gonna get more money from it (or better to say, give less to Vivendi). Also this could potentially mean that there is going to be more freedom in AB choices, thou not sure if that is a good think when Bobby Kotick is in charge... Lets hope this means progress in the game world :)  

Cwagmire21
Cwagmire21

Not really sure if this changes anything for us. I feel like Vivendi let Activision Blizzard basically do what they want since they've been so successful financially. 

RoadStar1602
RoadStar1602

@vadagar1 Same. Stood in line at midnight to pick up my copy, was unable to play for 2 days due to inadequate server preparation. Plagued with constant lag/disconnection and server outages/downtime throughout the short 3 or 4 weeks I was able to tolerated. Uninstalled shortly after, $60 lighter.

korvus
korvus moderator

@TheDarkNut This might not be a popular thing to say but I think that if Activision and Blizzard split up it would be Activision making good games again...Blizzard is just slowing everything down.

Rashagan
Rashagan

@noirtenshin WoW is in need of a massive facelift but really why don't they just make a new WoW every year like CoD while they're at it. That's sarcasm by the way.

Hurvl
Hurvl

@Cwagmire21 I also don't see any major changes happening, neither good or bad (for better or worse :P). Even though some protested against this, I knew it was gonna happen soon and like most things, you can't do anything about it, so might as well just accept it and get on with life.

korvus
korvus moderator

@Crush_Project He might have but it's always a lot more fun when it's part of a comment calling others retards =)