Video game publisher Activision Blizzard will gain its independence from French conglomerate Vivendi, five years after the company purchased a controlling stake in Blizzard.
Best known for publishing Call of Duty, World of Warcraft, and Skylanders, Activision Blizzard announced early today a group of investors, including CEO Bobby Kotick and co-chairman Brian Kelly, will buy back over 600 million shares owned by Vivendi.As a result, the group of investors will own just under 25% of the company. Kotick will remain CEO and Kelly will assume the duties of Chairman. Vivendi will retain approximately 83 million shares (12%) while the majority of shares will be held by the investing public. The deal should close by the end of September.
Said Kotick:
"These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi. 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 cash on hand to preserve financial stability.”
Activision is expected to report net revenue of $1.05 billion for the second quarter. Full results will release August 1.
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