Activision Blizzard is to go independent from parent company, Vivendi as Booby Kotick has lead an $8.2 billion buyout deal. The deal involves buying 439 million shares from Vivendi for $5.83 billion as well as an investment group led by Kotick and co-chairman Brian Kelly purchasing 172 million shares worth $2.34 billion.
Kotick said about the deal
“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. The transactions announced today will allow us to take advantage of attractive financing markets while still retaining more than $3 billion cash on hand to preserve financial stability.”
Kotick’s investment group, whose investment group also includes Chinese operator Tencent, Davis Advisors and Leonard Green & Partners, will hold around 24.9 per cent of the company, with Kotick and Kelly investing $100 million combined of their own cash. Vivendi will continue to hold around 12 per cent of shares.