Activision Blizzard and Investor Group Complete Purchase of Company Shares from Vivendi
October 11 2013 - 3:45PM
Business Wire
Newly Independent Company Now Majority Owned
by Public Shareholders
Activision Blizzard, Inc. (Nasdaq: ATVI), a global leader in
interactive entertainment, announced today that it had successfully
completed its previously announced acquisition of approximately 429
million company shares and certain tax attributes from Vivendi
(Euronext Paris: VIV) for approximately $5.83 billion, or $13.60
per share in cash. ASAC II LP, an investment vehicle led by
Activision Blizzard CEO Bobby Kotick and Chairman Brian Kelly, has
also completed its purchase of approximately 172 million company
shares from Vivendi for approximately $2.34 billion in cash, or
$13.60 per share, in a separate transaction.
The shares Activision Blizzard purchased in the transaction will
no longer be treated as outstanding, leaving the majority of the
remaining 690 million shares in the hands of public shareholders.
With the closing of the transaction, ASAC II LP—the investor group
which, in addition to Kotick and Kelly, includes Davis Advisors,
Leonard Green & Partners, L.P., Tencent, and one of the world's
largest global institutional investors—now owns approximately 24.7%
of the Company. Vivendi has retained 83 million shares, an
approximate 12% stake in the Company.
Activision’s stock purchase was financed with a combination of
approximately $1.2 billion of domestic cash on hand and recently
issued debt, including $1.5 billion of 5.625% senior notes due
2021, $750 million of 6.125% senior notes due 2024, and a $2.5
billion seven-year term loan facility. The entire $4.75 billion of
debt financing has a weighted average annual interest rate of less
than 5%.
“With the completion of this transaction we open a new chapter
in the history of Activision Blizzard,” Mr. Kotick said. “We expect
immediate shareholder benefits in the form of earnings-per-share
accretion and strategic and operational independence. Our audiences
and our incredibly talented employees around the world will benefit
from a focused commitment to the creation of great games. Our
shareholders and debt holders will have the benefit of an
energized, invested, deeply committed management team focused on
generating long-term, superior returns and effectively managing our
capital structure.”
Activision Blizzard received committed financing for the
transaction from Bank of America Merrill Lynch and J.P. Morgan.
J.P. Morgan Securities LLC acted as Activision Blizzard’s sole
financial advisor for the transaction and Skadden, Arps, Slate,
Meagher & Flom LLP provided legal counsel to the Company. A
special committee of independent directors formed to represent the
Company in negotiating and evaluating the transactions worked with
Centerview Partners as its financial advisor and Wachtell, Lipton,
Rosen & Katz as its legal counsel. ASAC II LP worked with
financial advisor Allen & Company LLC and its legal counsel is
Sullivan & Cromwell LLP.
About Activision Blizzard
Activision Blizzard, Inc. is the world’s largest and most
profitable independent interactive entertainment publishing
company. It develops and publishes some of the most successful and
beloved entertainment franchises in any medium, including Call of
Duty, World of Warcraft, Skylanders, and Diablo®.
Headquartered in Santa Monica California, it maintains
operations throughout the United States, Europe, and Asia.
Activision Blizzard develops and publishes games on all leading
interactive platforms and its games are available in most countries
around the world. More information about Activision Blizzard and
its products can be found on the company's website,
www.activisionblizzard.com.
Forward-looking statements:
This press release contains forward-looking statements
including, but not limited to, those relating to the expected
impact of the transactions described herein. The forward-looking
statements in this release are based upon information available to
the Company as of the date of this release, and the Company assumes
no obligation to update any such forward-looking statements.
Although these forward-looking statements are believed to be true
when made, they may ultimately prove to be incorrect. These
statements are not guarantees of the future performance of the
Company and are subject to risks, uncertainties and other factors,
some of which are beyond its control and may cause actual results
to differ materially from current expectations.
Activision Blizzard Investor Relations:Kristin SoutheySr.
Vice President, IR and Treasurer(310)
255-2635ksouthey@activision.comorActivision Blizzard
Media:Maryanne LataifSVP, Corporate Communications(310)
255-2704mlataif@activision.com
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