Kotick Crew Looking to Buy Activision
"Activision executives, including CEO Robert Kotick, are interested in such a deal..."
Vivendi is having problems getting shot of Activision aka Activision/Blizzard at the 25% premium it requires above the $8.3 billion current market value of the games companies but there maybe a saviour at a reduced premium. It maybe that current Activision/Blizzard CEO Robert Kotick may have the cash.
Because it's cash that the French media giant Vivendi is after, even if it has to drop its margin from 25% to 12%. And it's cash that Kotick and his crew have.
Reuters reports that, aside from a buy from a company like Microsoft, "another option being explored is for Activision itself to buy out Vivendi's 60 percent stake.
"Activision executives, including CEO Robert Kotick, are interested in such a deal, but it's not clear they could offer enough of a premium to tempt Vivendi, the sources said. The games company would need to raise some $5 billion in debt to finance the deal or partner with a private equity fund."
The plot, however, thickens, "Vivendi was hoping to get at least a bidder to challenge Activision's management and get a decent premium.
"But it didn't happen so now they are considering other options to raise cash and maintain the rating in the short term," the same source tells Reuters.
Because it's cash that the French media giant Vivendi is after, even if it has to drop its margin from 25% to 12%. And it's cash that Kotick and his crew have.
Reuters reports that, aside from a buy from a company like Microsoft, "another option being explored is for Activision itself to buy out Vivendi's 60 percent stake.
"Activision executives, including CEO Robert Kotick, are interested in such a deal, but it's not clear they could offer enough of a premium to tempt Vivendi, the sources said. The games company would need to raise some $5 billion in debt to finance the deal or partner with a private equity fund."
The plot, however, thickens, "Vivendi was hoping to get at least a bidder to challenge Activision's management and get a decent premium.
"But it didn't happen so now they are considering other options to raise cash and maintain the rating in the short term," the same source tells Reuters.
Read More Like This