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Activision Blizzard completes share buyback

Bobby Kotick points to China as focus of future growth

Activision Blizzard and an investor group led by CEO Bobby Kotick has completed its share buyback from parent company Vivendi.

The deal was finalised the day after a Delaware court lifted an injunction that came into effect after another Activision Blizzard shareholder asked for a shareholder vote to approve the deal. Activision Blizzard now owns $5.83 billion of stock, with Kotick and his partners owning $2.34 billion. Vivendi's stake has been reduced to 12 per cent.

"It reduces the uncertainty about our business and allows us to get back to focusing on making great games," Kotick said in an interview with Bloomberg.

During its five years as a unit of Vivendi, Activision Blizzard was consistently one of its strongest performers in terms of revenue and profit. However, the same was not true of Vivendi's other holdings, and the buyback will give Activision Blizzard the freedom to pursue opportunities for growth.

Kotick told Bloomberg that a focus for that growth will be the burgeoning games market in China. Tencent, China's leading online company, is one of the partners in Kotick's investment group.

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Latest comments (2)

Thomas Dolby Project Manager / Lead Programmer, Ai Solve3 years ago
Seems like a wise move, they already have a solid base their with Blizzard franchises in the east but Call of Duty seems to have hit the market saturation point here. They still have Skylanders but there's only so much more growth that can have as well in the western market too.
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Anthony Chan3 years ago
The takeaway from this news is that a extremely profitable (probably one of the most well known, top 10 at least) game publishers has gone private. I am wondering will this be the trend? For so many companies, going public was the craze a decade ago and seemed like the best way to raise cash. However it put many companies at risk of losing its own DNA amidst the larger conglomerate that often buys it out (eg. EA being one of those conglomerates).

I wonder which high profile company could be next. I might start placing bets on Rockstar :)
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