Activision splits from Vinvendi, pays $8 billion to go indie

In an interesting turn of events, Activision Blizzard has arranged to buy back around 429 million shares and some tax attributes for $5.83 billion to effectively split with its parent company, Vivendi.

In addition, ASAC II LP, whose members include Chinese games publisher Tencent as well as financial firms, will be securing a further 172 million shares for $2.34 billion in cash.

The total worth of the deals is $8.17 billion.

After the deal goes through, Activision Blizzard will be rendered an independent company. Vivendi will have a stake of around 12% while ASAC II LP will own around 24.9%. CEO Bobby Kotick and Co-Chairman Brian Kelly of ASAC II LP, who fronted $100 million of their personal funds, will be retained as CEO and sole chairman respectively.

In the words of Kotick,"These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi. We should emerge even stronger – an independent company with a best-in-class franchise portfolio and the focus and flexibility to drive long-term shareholder value and expand our leadership position as one of the world's most important entertainment companies."

Read the rest of this article at PlayStation Gang >