Activision 'Goes Indie' with Kotick as Head
Huge share buy back sees Activision leaving Vivendi
Activision and its CEO Robert - Bobby - Kotick, have decided that instead of being forced to pay out 'a sizeable' dividend to its parent, or rather former, parent, Vivendi, it's simply they're simply going to buy their way to freedom via a massive share buy-back.
In-debt Vivendi's inability to sell Activision and also to make what is considered to be enough cash from the games company forced its hand on the 8th of this month into making threats. As we reported:
As of July 7th, "Vivendi gains new powers to force the payment of a sizeable dividend from Activision." At the moment, the French giant must secure support from Activision's individual directors before the games company agrees to pay dividends that brings its net debt above $400m."
Kotick and Activision decided not to pay dividends on its massive profits but instead to unshackle itself, taking its video games cash with it.
It's topline announcement on this states:
"Company to Buy Back Approximately 429 Million Shares from Vivendi for $5.83 Billion
"Investor Group Led By CEO Bobby Kotick and Co-Chairman Brian Kelly to Separately Purchase Approximately 172 Million Activision Blizzard Shares from Vivendi for $2.34 Billion"
In short: "Following the completion of the transaction, Activision Blizzard will be an independent company with the majority of its shares owned by the public. The Company will be led by Bobby Kotick as Chief Executive Officer and Brian Kelly as Chairman.
Of course, nothing is ever straightforward...
"Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares or approximately 12%. ASAC II LP—the investor group which, in addition to Kotick and Kelly, includes Davis Advisors, Leonard Green & Partners, L.P., Tencent, as well as one of the largest global institutional investors—will own a stake of approximately 24.9%."
As for Bobby well, with the following quote you can almost see him fist-pumping the air and yelling, "Yes! Yes! You cheese-eating surrender monkeys! It's all mine now! ALLL MIIINE!!"
What he actually said was, "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."
Source: Activision
In-debt Vivendi's inability to sell Activision and also to make what is considered to be enough cash from the games company forced its hand on the 8th of this month into making threats. As we reported:
As of July 7th, "Vivendi gains new powers to force the payment of a sizeable dividend from Activision." At the moment, the French giant must secure support from Activision's individual directors before the games company agrees to pay dividends that brings its net debt above $400m."
Kotick and Activision decided not to pay dividends on its massive profits but instead to unshackle itself, taking its video games cash with it.
It's topline announcement on this states:
"Company to Buy Back Approximately 429 Million Shares from Vivendi for $5.83 Billion
"Investor Group Led By CEO Bobby Kotick and Co-Chairman Brian Kelly to Separately Purchase Approximately 172 Million Activision Blizzard Shares from Vivendi for $2.34 Billion"
In short: "Following the completion of the transaction, Activision Blizzard will be an independent company with the majority of its shares owned by the public. The Company will be led by Bobby Kotick as Chief Executive Officer and Brian Kelly as Chairman.
Of course, nothing is ever straightforward...
"Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares or approximately 12%. ASAC II LP—the investor group which, in addition to Kotick and Kelly, includes Davis Advisors, Leonard Green & Partners, L.P., Tencent, as well as one of the largest global institutional investors—will own a stake of approximately 24.9%."
As for Bobby well, with the following quote you can almost see him fist-pumping the air and yelling, "Yes! Yes! You cheese-eating surrender monkeys! It's all mine now! ALLL MIIINE!!"
What he actually said was, "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."
Source: Activision
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