Activision Blizzard CEO Bobby Kotick recently led a buyout of shares for the company from parent Vivendi, with the help of an investment group consisting of Tencent, Davis Advisors and Leonard Green & Partners, for $8.2 Billion. This is from the purchase of 439 million shares from Vivendi for $5.83 billion with the investment group spending $2.34 billion to purchase 172 million shares. Kotick is head of the investment group with Brian Kelly serving as co-chairman, with both individuals investing a combined $100 million of their own money.
Kotick stated that, “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.”
The investment group will hold 24.9 per cent of the publisher, while Vivendi still maintains 12 per cent in shares.