real-time news and commentary for investors
Wednesday, Aug 28
Activision credit facility going live next week; CS cuts estimates
- The $2.5B credit facility Activision (ATVI) plans to use to help buy back 429M of its shares from Vivendi will go live on Sep. 4, Reuters reports.
- Activision plans to repurchase the shares by end of Sep. using $4.75B in debt financing and $1.2B in cash on hand. CEO Bobby Koticks is separately buying 172M shares for $2.34B.
- Separately, Credit Suisse has cut its 2014 EPS estimate to $1.25 from $1.50, citing a 10-Q disclosure that indicates Activision has changed the status of ~$160M in software development costs from long-term to current.