Vivendi seeks to raise cash from Activision - report

News General Global 8 JUL 2013
Vivendi seeks to raise cash from Activision - report

Vivendi is exploring ways to extract cash from its games subsidiary, Activision Blizzard, after failing to sell part of its 61 percent stake, people close to the matter told the Financial Times. Two options considered during talks to prepare the disposal were an Activision IPO or bond offering. On 7 July Vivendi will gain new powers to force Activision to make a sizeable dividend payment, something analysts see as a bargaining chip in future negotiations.

Activision, the company behind the World of Warcraft and Call of Duty franchises, has USD 4.6 billion in net cash. Some analysts foresee Vivendi raising up to EUR 5 billion of debt at the subsidiary to force a leveraged dividend payout. Vivendi had USD 16.88 billion of debt at the end of March. It is currently rated triple B on negative outlook by S&P. Vivendi declined comment and Activision could not be reached.

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Voice services, Data services, Unified communications, Games, Wireline, Wireless, Internet Access, Broadcast, Consumer, Digital Music, Financial funding

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