Activision Blizzard becomes independent in $5.8-billion transaction
Activision Blizzard, the world’s largest video game publisher, will separate from its French media parent to become an independent, publicly traded company.
The company’s managers orchestrated a complex transaction to buy back shares from French parent Vivendi, and take back control of the company -- while leaving the majority of Activision Blizzard held by the public.
In a deal announced late Thursday, Activision Blizard will buy back approximately 429 million shares from Vivendi for roughly $5.83 billion, or $13.60 a share.
PHOTOS: 2012 highest-paid media executives
At the same time, ASAC II -- an investment group created by Activision Blizzard Chief Executive Bobby Kotick and Co-Chairman Brian Kelly, to which they contributed a combined $100 million -- will purchase about 172 million Activision shares from Vivendi for about $2.34 billion in cash. Other investors include Davis Advisors, Leonard Green & Partners and Tencent.
Vivendi, which has begun to divest companies to reflect new corporate priorities, will retain a 12% stake.
“This transaction uniquely benefits the public shareholders,” Kotick said in an interview. “The commitment that we have from Vivendi to continue as a shareholder shows their enthusiasm for the business. My investment shows I’m committed and enthusiastic about the prospects of the business.”
The Santa Monica-based company publishes such popular game titles as “Call of Duty” and “World of Warcraft.”
ALSO:
Univision confirms split with radio host Eddie ‘Piolin’ Sotelo
Zynga shares fall on outlook as Don Mattrick takes over as CEO
Audiam helps artists get paid from plays of their songs on YouTube
From the Oscars to the Emmys.
Get the Envelope newsletter for exclusive awards season coverage, behind-the-scenes stories from the Envelope podcast and columnist Glenn Whipp’s must-read analysis.
You may occasionally receive promotional content from the Los Angeles Times.
