Category: News Wire Published on Monday, 16 July 2012 22:36 Written by scaR Hits: 237
French publishing giant Vivendi, is looking to offload their gaming powerhouse Activision Blizzard. Their 61% stake is worth roughly $8 billion USD. An impressive turn in fortunes considering they bought the company for $1.7 billion in 2007. Games like World of Warcraft and the Call of Duty series has given the company a solid financial report. So why sell?
Parent company Vivendi is in debt up to their eyeballs. Several financial institutions are looking at cutting their debt rating unless they make significant changes and increase their cash flow. Nothing says cash like $8 billion right? So far they have offered many companies including Disney and Microsoft who have all turned it down.
The problem appears to be within the initial premise for the sale. Vivendi wants cash now, not over time. While many of the companies can well afford to make the purchase, they see no reason to do so. As declined offers continue to roll in, Vivendi faces a hard decision. Reports indicate that they may be desperate enough to sell their shares on the open stock market. Who knows who would scoop up the shares and end up in control of the company. The future may be grim for Activision Blizzard.
[ source : http://news.cnet.com/8301-10797_3-57471771-235/vivendi-faces-trouble-offloading-activision-stake-report-says/ ]