Activision Blizzard to become independent with buyout

Activision Blizzard has announced that it reached an agreement under which it will acquire from parent company Vivendi approximately 429 million Company shares, in exchange for approximately $5.83 billion in cash.

In a simultaneous transaction, ASAC II LP, an investment vehicle led by Activision Blizzard CEO Bobby Kotick and Co-Chairman Brian Kelly, to which they have personally committed $100 million combined, separately will purchase approximately 172 million Company shares from Vivendi for approximately $2.34 billion in cash.

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 will fund the acquisition with the combination of approximately $1.2 billion of domestic cash on hand and approximately $4.6 billion of debt proceeds. The Company has received committed financing for the transaction from Bank of America Merrill Lynch and J.P. Morgan. The transaction is expected to close by the end of September 2013.

For the second quarter of FY2013, Activision Blizzard expects to report net revenue of approximately $1.05 billion. For the quarter, Activision Blizzard had the #1 and #2 best-selling titles year-to-date with Skylanders Giants and Call of Duty: Black Ops II.

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