Activision Blizzard buys back stock from Vivendi – Now independent26 Jul 2013
There’s been uncertainty in the financial world regarding the future of Activision Blizzard’s stock this week but today Activision Blizzard announced they are buying back stock from parent company Vivendi in a deal worth $5.83 Billion.
$2.34 Billion worth of stock is being picked up by a group of investors led by Activision CEO Bobby Kotick and Co-Chairman Brian Kelly who personally committed $100 million combined in the deal. Other shareholders include Davis Advisors, Leonard Green & Partners, L.P., Tencent, as well as one of “the largest global institutional investors”. This group will now own a stake of approximately 24.9% with Vivendi retaining a minority share of 12%.
Bobby Kotick appears to be pleased with the outcome adding: “Our successful combination with Blizzard Entertainment five years ago brought together some of the best creative and business talent in the industry and some of the most beloved entertainment franchises in the world, including Call of Duty and World of Warcraft. Since that time, we have generated over $5.4 billion in operating cash flow and returned more than $4 billion of that to shareholders via buybacks and dividends. We are grateful for Vivendi’s partnership through this period, and we look forward to their continued support.”
If the ins and outs of videogame financing floats your boat, you can read the full blurb here.