Activision Blizzard May Buy Back Majority Stake from VivendiCategory: Gaming
Posted: July 19, 2012 01:05PM
Last month it was reported that Vivendi was considering selling its stake in Activision Blizzard in order to reverse its dropping stock price. There have been some potential buyers mentioned, like Microsoft and Disney, but nothing has come of that yet. However, it now looks like Activision Blizzard may buy back its majority stake from Vivendi. Activision Blizzard has a market worth of over $8 billion since Vivendi acquired the company in 2008. Few companies that Vivendi has approached have the $8 billion or so in spare cash to consider the purchase, so now it may let Activision reacquire the 61% majority stake. Activision Blizzard has around $3 billion in cash for the deal and it can get the rest in loans from investors if need be, but I imagine this would be a last resort for Vivendi. The company needs to recover its stock prices and also get out of a negative credit watch, so I cannot imagine it would settle for a lower price for Activision Blizzard. Vivendi will reveal its earnings for the first half on August 30th, which then it will determine what to do with Activision Blizzard and other assets.