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Vivendi (VIVHY.PK) has agreed to sell 85% of its stake in Activision Blizzard (ATVI) to the...

Vivendi (VIVHY.PK) has agreed to sell 85% of its stake in Activision Blizzard (ATVI) to the computer-games company and its management for $8.2B. Activision will buy back 429M shares from Vivendi for $5.83B, using $1.2B of cash and debt of $4.6B, while a consortium led by Activision CEO Bobby Kotick and co-Chairman Brian Kelly will acquire 172M shares for $2.34B. The value of the deal is $13.60 a share, or a 10% discount to Activision's close on Thursday of $15.18. Vivendi, which also plans to sell its holding in Maroc Telecom, will retain a stake of 12% in Activision after the deal is closed. (PR)
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Comments (6)
  • aioffe
    , contributor
    Comment (1) | Send Message
     
    Little typo: Activision Blizzard ticker is ATVI, not ACT (Actavis)
    26 Jul 2013, 03:13 AM Reply Like
  • SA Editor Yigal Grayeff
    , contributor
    Comments (346) | Send Message
     
    Apologies - the error has been corrected.

     

    Thanks for the spot,

     

    Yigal
    26 Jul 2013, 04:04 AM Reply Like
  • kabab
    , contributor
    Comments (7) | Send Message
     
    All in all a good deal for all involved, I imagine.

     

    That both the company and the investor group happen to be purchasing the shares at the same price ($13.60) must be a ruse. In fact, I think the deal is sweetest for Kotick, Kelly and co since they pay the lowest price per share. The deal is anti-dilutive. Ignoring the debt piled on to ATVI's balance sheet, it's like a 3:2 reverse stock split and KK & co get to purchase post split shares at $13.60 each.

     

    Anyway, I'm long the stock and am not complaining. Meh..
    26 Jul 2013, 04:06 AM Reply Like
  • Valueplay98
    , contributor
    Comments (584) | Send Message
     
    SA article predicting this - deserves some kudos:

     

    http://seekingalpha.co...
    26 Jul 2013, 06:06 AM Reply Like
  • The_Hammer
    , contributor
    Comments (4265) | Send Message
     
    wow. another illiquid asset sold at a discount. can u believe these guys? Basically a control position sold at a discount??
    26 Jul 2013, 07:52 AM Reply Like
  • jameskm03
    , contributor
    Comments (110) | Send Message
     
    Great deal for ATVI! I think this really unlocks value and helps the company focus long term and they got a hell of a deal especially after seeing the markets reaction today.
    26 Jul 2013, 03:23 PM Reply Like
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