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Vivendi still looking to unload Activision Blizzard

Vivendi still looking to unload Activision Blizzard

Wed 15 May 2013 3:09pm GMT / 11:09am EDT / 8:09am PDT
BusinessPublishing

French telecom weighing options as publisher brass reportedly interested in buying back some of parent company's stake

Activision Blizzard

Headquartered in Santa Monica, California, Activision Blizzard, Inc. is a worldwide pure-play online...

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Another record year of revenues for Activision Blizzard has done nothing to change parent company Vivendi's stance on trying to sell the game publisher. In announcing its quarterly results yesterday, the French telecom giant said the Vivendi-controlled Activision Blizzard board of directors was still weighing multiple options regarding the possible sale of the publisher.

According to the Wall Street Journal, Activision Blizzard management is interested in using stockpiled cash reserves to buy back a chunk of Vivendi's 61.2 percent ownership in the publisher. Vivendi has controlled the game company since 2008, when an $18.9 billion merger saw the telecom's existing Blizzard Entertainment and Vivendi Games merged with Activision.

Vivendi has been looking to sell Activision Blizzard since last summer, but found few takers for its share of the publisher, which was worth more than $8 billion on the open market. One of the company's key priorities for 2013 is to boost cash flow and pay down its debt, which is expected to stand at about €12.5 billion ($16.09 billion) once a handful of existing subsidiary sales are completed.

7 Comments

Come on Nintendo. You have enough cash - buy them, it would definitely mix things up...

Posted:11 months ago

#1

Paul Jace
Merchandiser

765 997 1.3
Michael I doubt Activision Blizzard would want(or allow) to be purchased by Nintendo. Those two companies are on completely different courses for the future. Furthermore, when's the last time you saw Nintendo make a purchase for hundreds of millions or more? The only way this would happen is on April 1st.

As for "real" suitors, I doubt anyone is going to want to touch them as long as they are hovering around 8 billion. They may be worth that much but the potential buyer would have to work super hard to be able to turn a profit on an 8 billion dollar purchase. So they will probably continue to go unpurchased until they come down in price.

Posted:11 months ago

#2

Robert Oelenschlager
Independent Game Developer

20 18 0.9
Can someone please explain to me why they want to sell Activision Blizzard? I'm no analyst, so I just can't understand what kind of profit they stand to gain from such a deal (if one is ever made) if they're still making money off of these guys.

Posted:11 months ago

#3

Greg Wilcox
Creator, Destroy All Fanboys!

1,993 902 0.5
@Robert: Oh, i dunno... perhaps they're making LESS money (albeit still a LOT of it) and Vivendi wants to unload before revenues drop to the point where no one wants to buy because that potential purchaser wants an automatic hit-making cash machine running without having to worry about a few years down the road when certain franchises have lost all their momentum?

Posted:11 months ago

#4

Sean Kauppinen
Founder & CEO

43 44 1.0
Activision Blizzard is a huge company that would pay back the purchaser in 4-5 years. I'm thinking Blackstone or even Berkshire Hathaway could be a suitor for a large cap, cash flow positive business such as this.

Posted:11 months ago

#5
Look at used car sales. Thats probably what VIvendi are thinking

Posted:11 months ago

#6

Brandon Roe
Product Manager

1 0 0.0
Well looking at the math, I don't know how much the servers for WoW cost but they have 8 million subscribers, paying what like 15 dollars a month. That equates to 120 million a month that they get. 1,440,000,000 a year. They also get Starcraft and Diablo, That is just on the Blizzard side of things, lets not forget anything Activision does.

While 8 Billion is a lot, I think that they would be able to make back the money and then some, plus Blizzard is about to do a new IP.

Posted:11 months ago

#7

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