Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
Customize
User Settings
Styles:
LAN Parties
Upcoming one-time events:

Regularly scheduled events

Activision Blizzard Buys Back Stock

Activision Blizzard announces a buyback of its stock from French parent Vivendi for a price tag of $5.83 billion, simultaneously announcing another $2.34 billion in stock is being picked up by a group of investors led by Activision CEO Bobby Kotick and Co-Chairman Brian Kelly, who are committing $100 million of their own pocket change to the kitty. This comes shortly after reports that Vivendi was planning on raiding Activision's cash stockpile to pay down some of its own debt. The company will now be publically owned, with a 12% interest remaining with Vivendi. Here's word:

Following the completion of the transaction, Activision Blizzard will be an independent company with the majority of its shares owned by the public. The Company will be led by Bobby Kotick as Chief Executive Officer and Brian Kelly as Chairman. Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares or approximately 12%. ASAC II LP—the investor group which, in addition to Kotick and Kelly, includes Davis Advisors, Leonard Green & Partners, L.P., Tencent, as well as one of the largest global institutional investors—will own a stake of approximately 24.9%.

Activision Blizzard expects that its new outstanding share count and capital structure (which will include approximately $1.4 billion of net debt) will result in expected pro forma 2013 earnings-per-share (EPS) accretion of between 18% and 29% on a GAAP basis and between 23% and 33% on a non-GAAP basis.

Bobby Kotick, CEO of Activision Blizzard, said, “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. 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.”

Mr. Kotick continued, “Our successful combination with Blizzard Entertainment five years ago brought together some of the best creative and business talent in the industry and some of the most beloved entertainment franchises in the world, including Call of Duty® and World of Warcraft®. Since that time, we have generated over $5.4 billion in operating cash flow and returned more than $4 billion of that to shareholders via buybacks and dividends. We are grateful for Vivendi’s partnership through this period, and we look forward to their continued support.”

View
40 Replies. 2 pages. Viewing page 1.
< Newer [ 1 2 ] Older >

40. Re: Activision Blizzard Buys Back Stock Jul 30, 2013, 04:00 LibertyOrDeath
 
Still one of the best developers on the planet. Also shows their smarts to regain their company before the nextgen RPG hits. They are far from a failing company. I also want to point out how a public traded company works. "an independent company with the majority of its shares owned by the public." All corporate greed, huh? Next topic...  
Reply Quote Edit Delete Report
 
39. Re: Activision Blizzard Buys Back Stock Jul 27, 2013, 02:03 Krizzen
 
NKD wrote on Jul 26, 2013, 23:36:
Krizzen wrote on Jul 26, 2013, 21:50:
Blizzard has had the privilege to operate independently when they were owned by Davidson and Associates and that carried over to when they were owned by Vivendi. Now that Activision owns controlling interest in Blizzard, I fear that Blizzard has now lost it's independence. So if you guys think their situation is bad now, it's only just begun.

You're a little late to the party, Blizzard hasn't had independence for five years. Vivendi flushed all that down the toilet when they merged them with Activision.

Wrong. Blizzard retained its autonomy and corporate leadership. Now Vivendi has lost controlling interest in Blizzard (from 63% to 12%).

It's convenient isn't it? Do it right, get the credit. Do it wrong, people blame some meddling corporate hierarchy.

Never underestimate corporate greed.
 
Avatar 57568
 
Reply Quote Edit Delete Report
 
38. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 23:36 NKD
 
Krizzen wrote on Jul 26, 2013, 21:50:
Blizzard has had the privilege to operate independently when they were owned by Davidson and Associates and that carried over to when they were owned by Vivendi. Now that Activision owns controlling interest in Blizzard, I fear that Blizzard has now lost it's independence. So if you guys think their situation is bad now, it's only just begun.

You're a little late to the party, Blizzard hasn't had independence for five years. Vivendi flushed all that down the toilet when they merged them with Activision.

That said, I don't really believe in the idea that companies I like can do no wrong, and if they fuck up it must be something they were forced into by the corporate overlords.

It's convenient isn't it? Do it right, get the credit. Do it wrong, people blame some meddling corporate hierarchy.
 
Avatar 43041
 
If you don't like where gaming is heading, stop giving your money to the people who are taking it in that direction.
Reply Quote Edit Delete Report
 
37. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 21:50 Krizzen
 
Blizzard has had the privilege to operate independently when they were owned by Davidson and Associates and that carried over to when they were owned by Vivendi. Now that Activision owns controlling interest in Blizzard, I fear that Blizzard has now lost it's independence. So if you guys think their situation is bad now, it's only just begun.  
Avatar 57568
 
Reply Quote Edit Delete Report
 
36. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 20:01 xXBatmanXx
 
ViRGE wrote on Jul 26, 2013, 11:59:
Jivaro wrote on Jul 26, 2013, 11:52:
eRe4s3r wrote on Jul 26, 2013, 11:19:
But they get to keep their new billion $ debt.. haha... pwned by Vivendi in all ways possible....

I am sorry, I don't follow your logic. Can you explain that one to me? Vivendi can't raid them for money, now or in the future. New investors bought the stock. Those investors own that. They aren't in debt to themselves. Yes Vivendi gets the cash infusion of selling that stock, but I am not sure I follow how Acti-Blizz has absorbed any debt. Maybe I am missing something.
I believe you're correct. At first glance it looks like this blocks Vivendi's plan to raid the Activision wallet before it ever happened.

Well, one would hope that Vivendi is able to get out of debt with almost 6B in cash!?
 
Avatar 10714
 
In this present crisis, government is not the solution to our problem; government is the problem. / Few men have virtue enough to withstand the highest bidder.
Playing: New dad
Reply Quote Edit Delete Report
 
35. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 17:00 Optional Nickname!
 
ASeven wrote on Jul 26, 2013, 12:22:
Kotick was pretty smart here and killed two birds with one stone. Pretty much this was the only move he could make where ActiBlizz could come out as a winner.


Kotick is taking a page right from F. Ross Johnson regarding ActiBlizzard:

"Tastes like shit and smells like a fart! Got ourselves one hell of a product on our hands... it's one unique advertising strategy I'll tell ya that."


Look forward to absolutely nothing special from Kotick and friends.
 
Reply Quote Edit Delete Report
 
34. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 16:53 RollinThundr
 
Agent.X7 wrote on Jul 26, 2013, 16:49:
Cutter wrote on Jul 26, 2013, 16:31:
Hellbinder wrote on Jul 26, 2013, 15:17:
why does bobbly kotic have 100 million but the employees are paid for shit and then kicked to the curb.

I really hate corporate America. problem is i dont much care for liberal America either.

someone needs to come up with a whole new system of government and finance.

Golly, you mean like a socialist government? Something where a balance is struck that its fair to everyone?

Something that has yet to ever happen in the history of man?

but but all the other times it was just flawed! This time it'll be perfect!
 
Reply Quote Edit Delete Report
 
33. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 16:49 Agent.X7
 
Cutter wrote on Jul 26, 2013, 16:31:
Hellbinder wrote on Jul 26, 2013, 15:17:
why does bobbly kotic have 100 million but the employees are paid for shit and then kicked to the curb.

I really hate corporate America. problem is i dont much care for liberal America either.

someone needs to come up with a whole new system of government and finance.

Golly, you mean like a socialist government? Something where a balance is struck that its fair to everyone?

Something that has yet to ever happen in the history of man?
 
Avatar 23400
 
Origin - JStarX7
STEAM - Agent.X7
PSN - JStar_X7
Xbox Live - Agent X7
Reply Quote Edit Delete Report
 
32. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 16:31 Cutter
 
Hellbinder wrote on Jul 26, 2013, 15:17:
why does bobbly kotic have 100 million but the employees are paid for shit and then kicked to the curb.

I really hate corporate America. problem is i dont much care for liberal America either.

someone needs to come up with a whole new system of government and finance.

Golly, you mean like a socialist government? Something where a balance is struck that its fair to everyone?
 
Avatar 25394
 
"The South will boogie again!" - Disco Stu
Reply Quote Edit Delete Report
 
31. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 16:22 MoreLuckThanSkill
 
Hellbinder wrote on Jul 26, 2013, 15:17:
why does bobbly kotic have 100 million but the employees are paid for shit and then kicked to the curb.

I really hate corporate America. problem is i dont much care for liberal America either.

someone needs to come up with a whole new system of government and finance.

There is no liberal America. There is corporate America, and the ultra right wing America.

There is no chance of a new system because the people it would benefit have zero power and almost zero money.

Hopefully this cheers you up.
 
Avatar 54863
 
Reply Quote Edit Delete Report
 
30. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 15:40 NewMaxx
 
Agent.X7 wrote on Jul 26, 2013, 12:28:
I'm pretty sure this was actually what Vivendi wanted. It's pretty common to announce some batshit insane plan to force stockholders to do what you want them to.

Likely the maneuvering had already been complete at that point, I think the announcement was mostly for the benefit of shareholders. You can tell this because although Vivendi's stock jumped on this most recent news, it actually initially jumped on the 23rd after the original debt plan announcement. You do still have to read between the lines, though.
 
Reply Quote Edit Delete Report
 
29. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 15:20 nin
 
Hellbinder wrote on Jul 26, 2013, 15:17:
why does bobbly kotic have 100 million but the employees are paid for shit and then kicked to the curb.

I really hate corporate America. problem is i dont much care for liberal America either.

someone needs to come up with a whole new system of government and finance.


Deep thoughts...

 
http://www.nin.com/pub/tension/
Reply Quote Edit Delete Report
 
28. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 15:17 Hellbinder
 
why does bobbly kotic have 100 million but the employees are paid for shit and then kicked to the curb.

I really hate corporate America. problem is i dont much care for liberal America either.

someone needs to come up with a whole new system of government and finance.
 
The Whales name is Bob.
Reply Quote Edit Delete Report
 
27. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 15:10 Tumbler
 
Meh, I'm feeling like this change is kind of a wash. It's possible vivendi was heavy handed in how they dealt with Acti Bliz but I've never heard that if so.

I've no idea if not having Vivendi there will make things better or worse. I think Vivendi is wise to cash out at this point simply because there is no guarantee that Acti Blizz franchises will continue to be as popular on nex gen systems. It's a "safe bet" Cod will do ok for the first few years just like Halo did on 360 but with so many new franchises and new types of games being tried I couldn't be surprised if their games don't do as well. I'd say they are in danger of not being innovative right now and sticking with the COD formula will look obsolete very quickly if games like Destiny and The Bureau (not the xcom one) end up delivering the experience people hope they will.
 
99gamers.com-Game trading site, PC digital trading!
Kickstarter "Game Developer"!
Reply Quote Edit Delete Report
 
26. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 14:42 eRe4s3r
 
NKD wrote on Jul 26, 2013, 12:13:
eRe4s3r wrote on Jul 26, 2013, 11:19:
But they get to keep their new billion $ debt.. haha... pwned by Vivendi in all ways possible....

Nope. This happened INSTEAD of the cash-grab. Vivendi gets the cash they need, and Actiblizz gets to keep like $3 billion in cash and are no longer in danger of being raided by Vivendi.

Before this Acti had 4 billion cash, now they have a 1.4b net-debt and 3 billion cash.... (Does not mean they are somehow lacking money, it just means they have more long/short term liabilities than cash)

And unless I misunderstand something. ActiBliz just took on 4.4b in liabilities (net debt = liabilities - cash). While Vivendi got rid of em and made money. Explain please if I misunderstood something here. But that's how I define being pwned.

And Vivendi got what it wanted out of this anyway....

ActiBliz is still in good shape of course.... since they have 3 billion in cash.. and "only" 4.4b in liabilities.

Anyhow... I don't understand how it was confusing what I wrote... but I am willing to be corrected on this if it's wrong.

This comment was edited on Jul 26, 2013, 15:23.
 
Avatar 54727
 
Reply Quote Edit Delete Report
 
25. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 14:42 Redmask
 
RollinThundr wrote on Jul 26, 2013, 14:00:
They do pay taxes, just not as much as you wealth redistribution advocates would like.

They do pay taxes, just not much as much you failed trickle down economic daydreamers think they should.
 
Avatar 57682
 
Reply Quote Edit Delete Report
 
24. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 14:28 jdreyer
 
RollinThundr wrote on Jul 26, 2013, 14:00:
Cutter wrote on Jul 26, 2013, 13:25:
So they have money to buy companies but not pay taxes, eh?

They do pay taxes, just not as much as you wealth redistribution advocates would like.

Give me a break, Thundr. By any metric the corporate tax system is badly broken. When companies like Google and Apple and Microsoft make billions in profit, yet are paying two (Google) or ten (Apple) percent in taxes, something is very, very wrong.
 
Avatar 22024
 
"It's just a bunch of mystic bovine scatology to me." - 1badmf
Reply Quote Edit Delete Report
 
23. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 14:11 Agent.X7
 
Cutter wrote on Jul 26, 2013, 13:25:
So they have money to buy companies but not pay taxes, eh?

They pay taxes (probably) but international finance is complex. There are PHD programs in it. Essentially international corps pay taxes where they make and bank the money. If they make it in Germany, Germany taxes the income. If they take that money and transfer it to the US, then they pay taxes on the income in the US as well. So, they've now made the money once and paid taxes on it twice.

Of course, I have no sympathy. I make my money, it's taxed when I earn it and taxed when I spend it, and I have no chance in hell of paying negative tax like Coca-Cola or some other giant companies that make billions but somehow get a refund anyway.
 
Avatar 23400
 
Origin - JStarX7
STEAM - Agent.X7
PSN - JStar_X7
Xbox Live - Agent X7
Reply Quote Edit Delete Report
 
22. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 14:00 RollinThundr
 
Cutter wrote on Jul 26, 2013, 13:25:
So they have money to buy companies but not pay taxes, eh?

They do pay taxes, just not as much as you wealth redistribution advocates would like.
 
Reply Quote Edit Delete Report
 
21. Re: Activision Blizzard Buys Back Stock Jul 26, 2013, 13:25 Cutter
 
So they have money to buy companies but not pay taxes, eh?
 
Avatar 25394
 
"The South will boogie again!" - Disco Stu
Reply Quote Edit Delete Report
 
40 Replies. 2 pages. Viewing page 1.
< Newer [ 1 2 ] Older >


footer

.. .. ..

Blue's News logo