Vivendi selling most of Activision stake for $8.2 billion

A logo of entertainment-to-telecoms conglomerate Vivendi is seen on the main entrance of the company's headquarters in Paris July 23, 2013.

Credit: Reuters/Christian Hartmann

PARIS/BANGALORE | Fri Jul 26, 2013 1:30am EDT

PARIS/BANGALORE (Reuters) - France's Vivendi (VIV.PA) said on Friday that it planned to sell 85 percent of its stake in Activision Blizzard Inc (ATVI.O) to the video games maker and its management for $8.2 billion, its second blockbuster deal in the past week.

The buyback follows weeks of speculation the French media to telecoms conglomerate was looking for ways to pull cash out of the largest U.S. video games publisher as part of a wider restructuring aimed at cutting debt and refocusing its business.

Still, the move is surprising in some ways, given that Vivendi has talked up its media assets as the company's future and that Activision is its largest and most profitable media asset.

In another prong of the restructuring, Vivendi earlier this week announced it was in exclusive talks to sell its controlling stake in Maroc Telecom for 4.2 billion euros ($5.56 billion).

Activision said early on Friday it would buy back 429 million shares from Vivendi for $5.83 billion.

An investor group led by Chief Executive Bobby Kotick and Co-Chairman Brian Kelly has agreed to separately purchase about 172 million Activision shares from Vivendi for $2.34 billion.

Vivendi is selling the shares for $13.60 each, a 10 percent discount to Activision's closing price on Thursday.

After the completion of the deal, Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares or about 12 percent of Activision.

(Reporting by Sakthi Prasad in Bangalore and Christian Plumb in Paris; Editing by Prateek Chatterjee and James Regan)

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Vivendi selling most of Activision stake for $8.2 billion

A logo of entertainment-to-telecoms conglomerate Vivendi is seen on the main entrance of the company's headquarters in Paris July 23, 2013.

Credit: Reuters/Christian Hartmann

PARIS/BANGALORE | Fri Jul 26, 2013 1:30am EDT

PARIS/BANGALORE (Reuters) - France's Vivendi (VIV.PA) said on Friday that it planned to sell 85 percent of its stake in Activision Blizzard Inc (ATVI.O) to the video games maker and its management for $8.2 billion, its second blockbuster deal in the past week.

The buyback follows weeks of speculation the French media to telecoms conglomerate was looking for ways to pull cash out of the largest U.S. video games publisher as part of a wider restructuring aimed at cutting debt and refocusing its business.

Still, the move is surprising in some ways, given that Vivendi has talked up its media assets as the company's future and that Activision is its largest and most profitable media asset.

In another prong of the restructuring, Vivendi earlier this week announced it was in exclusive talks to sell its controlling stake in Maroc Telecom for 4.2 billion euros ($5.56 billion).

Activision said early on Friday it would buy back 429 million shares from Vivendi for $5.83 billion.

An investor group led by Chief Executive Bobby Kotick and Co-Chairman Brian Kelly has agreed to separately purchase about 172 million Activision shares from Vivendi for $2.34 billion.

Vivendi is selling the shares for $13.60 each, a 10 percent discount to Activision's closing price on Thursday.

After the completion of the deal, Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares or about 12 percent of Activision.

(Reporting by Sakthi Prasad in Bangalore and Christian Plumb in Paris; Editing by Prateek Chatterjee and James Regan)

View the original article here

Vivendi sells Activision stake for $8.2 billion

PARIS (AP) — Vivendi SA is selling most of its majority stake in video game maker Activision Blizzard Inc. for $8.2 billion as the French conglomerate tries to strengthen its balance sheet.

In a statement Friday, Vivendi said that 429 million of its shares will be sold to Activision itself, which makes such games as "World of Warcraft." Another 172 million shares will be sold to a consortium of key investors including Activision's CEO Bobby Kotick and Co-chairman Brian Kelly.

With the sale, at $13.60 per share, Vivendi will reduce its holdings from 61.1 percent of Activision's common shares to 12 percent. The French company will continue to hold 83 million Activision shares after the sale, expected to close in September.

Vivendi has held a majority stake in Santa Monica, California-based Activision since 2008.

Vivendi , whose shares were up 1.35 percent to 16.20 euros in trading in Paris after the announcement, said in the statement that the sale "provides the group with greater financial flexibility and creates value for our shareholders."

Part of the cash will be used to strengthen the balance sheet and maintain its credit rating. Vivendi has been trying to restructure and sell off some businesses in its diverse conglomerate, and announced earlier this week that it's in talks to sell its stake in Maroc Telecom.

View the original article here

Vivendi sells Activision stake for $8.2 billion

PARIS (AP) — Vivendi SA is selling most of its majority stake in video game maker Activision Blizzard Inc. for $8.2 billion as the French conglomerate tries to strengthen its balance sheet.

In a statement Friday, Vivendi said that 429 million of its shares will be sold to Activision itself, which makes such games as "World of Warcraft." Another 172 million shares will be sold to a consortium of key investors including Activision's CEO Bobby Kotick and Co-chairman Brian Kelly.

With the sale, at $13.60 per share, Vivendi will reduce its holdings from 61.1 percent of Activision's common shares to 12 percent. The French company will continue to hold 83 million Activision shares after the sale, expected to close in September.

Vivendi has held a majority stake in Santa Monica, California-based Activision since 2008.

Vivendi , whose shares were up 1.35 percent to 16.20 euros in trading in Paris after the announcement, said in the statement that the sale "provides the group with greater financial flexibility and creates value for our shareholders."

Part of the cash will be used to strengthen the balance sheet and maintain its credit rating. Vivendi has been trying to restructure and sell off some businesses in its diverse conglomerate, and announced earlier this week that it's in talks to sell its stake in Maroc Telecom.

View the original article here