Activision Blizzard to buy out Vivendi for £5.3bn

Activision Blizzard, the video games publisher responsible for Call of Duty and World of Warcraft, has announced a deal to buy back most of its shares from French media giant Vivendi.
Activision will acquire 429 million shares for approximately £3.79 billion in cash, or £8.83 per share. Meanwhile, an investment vehicle formed by Activision CEO Bobby Kotick and Co-Chairman Brian Kelly

will separately buy 172 million shares. Kotick and Kelly will personally invest a combined £65 million.

Following the completion of the transaction, Activision Blizzard will be an independent company with the majority of its shares owned by the public. Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares or approximately 12 per cent.

“These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi,” said Kotick in a statement.

“We should emerge even stronger – an independent company with a best-in-class franchise portfolio and the focus and flexibility to drive long-term shareholder value and expand our leadership position as one of the world’s most important entertainment companies.

“The transactions announced today will allow us to take advantage of attractive financing markets while still retaining more than $3 billion (£1.9bn) cash on hand to preserve financial stability.”