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Activision Blizzard Shares Surge as Company Buys Stake Back from Vivendi; Announces New Capital Structure (ATVI)

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Shares of Activision Blizzard Inc. (NASDAQ: ATVI), a worldwide publisher of online, personal computer, console, handheld, and mobile interactive entertainment products, are soaring in trading today after the company announced that it reached an agreement with Vivendi under which it will acquire from Vivendi approximately 429 million ATVI shares and certain tax attributes.

Under the terms of the agreement, ATVI will pay Vivendi $5.83 billion in cash, or $13.60 per share acquired before accounting for the future benefit from tax attributes. In addition, an investment vehicle, ASAC II LP, which will be led by Activision Blizzard CEO Bobby Kotick and Co-Chairman Brian Kelly, will purchase approximately 172 million shares from Vivendi for approximately $2.34 billion in cash or $13.60 per share.

On completion of the transaction, Activision Blizzard will become an independent company with the majority of its shares owned by public.

CEO Kotick said that the transactions together represent a tremendous opportunity for ATVI and all of its shareholders, including Vivendi. Kotick further said that ATVI should emerge even stronger-an independent company with a best-in-class franchise portfolio and the focus and the flexibility to drive long-term shareholder value and expand its leadership position as one of the world’s most important entertainment companies.

ATVI shares struck a 52-week high of $17.76 earlier today. At last check, the stock was up 15.18% to $17.48 on above average volume of 36.13 million. Year-to-date, the stock has now gained more than 64%.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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