Vivendi to Acquire a Controlling Stake in Activision

[Lefazz]

They should have just went with "Blizzard" for their name. Who really gives a shit about Activision?

[Bongk]

Originally Posted by Lefazz

They should have just went with "Blizzard" for their name. Who really gives a shit about Activision?

well these figures are only from october so obviously much higher.

Year-to-Date Software Sales (by franchise)

2.8m - Guitar Hero II
1.4m - Guitar Hero III: Legends of Rock

I would say about 4 million people, as of october for this year only, to answer your question.


(edit) and as of november 19th...

"Guitar Hero III: Legends of Rock" roared out of the gate this month, claiming the title of best-selling game with 1.4 million copies sold across all platforms.

Make that about 6 million and thats just one franchise.

[mutantmagnet]

Originally Posted by Lefazz

They should have just went with "Blizzard" for their name. Who really gives a shit about Activision?

Well before the merger, Activision managed to edge ahead of EA as the largest 3rd party console developer. Activision has been a big company in the past and they have exceeded that level of excellenece before this merger happened.

[Rythonn]

Originally Posted by Bongk

well these figures are only from october so obviously much higher.

Year-to-Date Software Sales (by franchise)

2.8m - Guitar Hero II
1.4m - Guitar Hero III: Legends of Rock

I would say about 4 million people, as of october for this year only, to answer your question.

Because obviously the 1.4m who bought 3 didn't buy 2. Just stop doing math and say, "lots of people".

[Exploit]

Originally Posted by mutantmagnet

I have a wait and see attitude about all of this because while Blizzard Entertainment is a powerful entity in their own right I find it laughable they made a FAQ where the only thing they were uncertain about is the realloaction of employees to different divisions. They really think they are untouchable enough to not be influenced by Activision, or Vivendi for that matter, aside from that one issue I mentioned.

I don't know who wrote that FAQ or who made that statement but my information comes from people working at Blizzard and on WoW. They told me they never talk to anyone at Vivendi ever. I'm sure Jeff K. and other higher ups within Blizzard speak with Vivendi from time to time but they don't mention it to their teams when/if they do. Vivendi is just the money nothing more, they provide the house and beer and Blizzard throws the party. Vivendi just wants Blizzard to shovel mass amounts of money into their vault they don't give a shit how Blizzard does it. With Blizzard being as powerful as they are you can bet your ass Vivendi would never do anything without people at Blizzard on board. Why would anyone try to fix a company who has many of the best selling PC games of all time?

To answer your question, yes Blizzard really is that untouchable. Best case, Activision improves the already highest quality pc game dev studio in the world. Worst case, Flagship Studios II opens up and Blizzard sinks like a rock causing the company to take a massive hit.

[Stave]

Ok, I dont know much about the stock market, but I am thinking on short term investing on this. Does anyone know what day the stock goes live, and what the stock symbol for the new stock is going to be? Also does anyone know what the stock price will be when it enters the market? Thanks

[Frawdo]

In the merger, expected to be completed in the first half of 2008, shares of Vivendi Games will be converted into 295.3 million new shares of Activision common stock, a transaction that values Vivendi Games at $8.1 billion. Vivendi will also buy 62.9 million newly issued shares of Activision for $1.7 billion in cash.

The two companies also said that within five business days after closing the transaction, Activision Blizzard would begin a $4 billion all-cash tender offer to purchase up to 146.5 million Activision Blizzard common shares at $27.50 a share. If the tender offer is fully subscribed, Vivendi said it would own 68 percent of Activision Blizzard on a fully diluted basis.

Actually I'm sort of interested in the financial aspect of this as well, would somebody with a little more experience mind explaining the above quote a little more clearly?

"shares of Vivendi Games will be converted into 295.3 million new shares of Activision common stock

Who does that benefit? Does that translate into earnings for ATVI stockholders? Right now there are two seperate public companies with two different stocks (VIV and ATVI) - after the merger, will there only be one company and one stock?

"Vivendi will also buy 62.9 million newly issued shares of Activision for $1.7 billion in cash."

I think I understand this, this is just Vivendi buying out a portion of Activision?

"Activision Blizzard would begin a $4 billion all-cash tender offer to purchase up to 146.5 million Activision Blizzard common shares at $27.50 a share. If the tender offer is fully subscribed, Vivendi said it would own 68 percent of Activision Blizzard on a fully diluted basis."

How come now Activision Blizzard is buying it's own shares? Who are they buying them from?

[Believe]

Originally Posted by Frawdo

Who does that benefit? Does that translate into earnings for ATVI stockholders? Right now there are two seperate public companies with two different stocks (VIV and ATVI) - after the merger, will there only be one company and one stock?

I would think Vivendi stock covers a lot more than their gaming division. I think what this will do is separate the game division from the rest of Vivendi stock, and will join Activision stock under Activision Blizzard.

Originally Posted by Frawdo

I think I understand this, this is just Vivendi buying out a portion of Activision?

Vivendi is buying a majority of Activision's stock, I believe, yes.

Originally Posted by Frawdo

How come now Activision Blizzard is buying it's own shares? Who are they buying them from?

I really don't know shit about the stock market, but it will be publicly traded so I'd assume they would want to own a majority of the stock so they are the 'owners' of the company.

[Plorkyeran]

Originally Posted by Frawdo

"shares of Vivendi Games will be converted into 295.3 million new shares of Activision common stock

Who does that benefit? Does that translate into earnings for ATVI stockholders? Right now there are two seperate public companies with two different stocks (VIV and ATVI) - after the merger, will there only be one company and one stock?

There will still be two stocks. Vivendi is not merging with Activision ― they're selling Vivendi Games to Activision at the same time as they're buying a controlling share of the resulting company. Currently all shares of Vivendi Games are owned by Vivendi Universal, so "shares of Vivendi Games will be converted into 295.3 million new shares of Activision common stock" really means "VG is becoming part of Activision, but with VU retaining ownership of it".

Originally Posted by Frawdo

"Vivendi will also buy 62.9 million newly issued shares of Activision for $1.7 billion in cash."

I think I understand this, this is just Vivendi buying out a portion of Activision?

Yes.

Originally Posted by Frawdo

"Activision Blizzard would begin a $4 billion all-cash tender offer to purchase up to 146.5 million Activision Blizzard common shares at $27.50 a share. If the tender offer is fully subscribed, Vivendi said it would own 68 percent of Activision Blizzard on a fully diluted basis."

How come now Activision Blizzard is buying it's own shares? Who are they buying them from?

They're buying back shares from people who have bought shares of Activision.

[RiskyChris]

God, how the fuck does the stock market work?

You know that scene in Ferris Bueller with the stock trading? What the fuck is going on in places like that?

[eggrollking]

What does this even mean for the companies? Cross-platform games? That it?

But ya Activision Blizzard is an ugly name. Activizard. Blizavision.

[Ortega]

Existing shares of ATVI will be shares of Activision Blizzard after the merger.... If you want to get in this right now all you have to do is buy ATVI and hold on to it. This is a great investment as I'm sure I don't have to tell many of you.

EDIT
Eggrollking I have no idea what this means in terms of new games and such for Blizzard and Activision, but I do know that Blizzard is Vivendi's golden egg and that them being able to announce their earnings separately from the huge ass business that is Vivendi will influence this small stock BIG TIME.

[Ukerric]

Originally Posted by mutantmagnet

They really think they are untouchable enough to not be influenced by Activision, or Vivendi for that matter, aside from that one issue I mentioned.

They should be. If the management above knows not to kill the goose as long as it lays golden eggs, they will be left alone.

Unfortunately, sometimes, the management above doesn't know that (or think he knows better, which usually isn't true). And management must always be watching, because when you lay golden eggs all the time, you may end up thinking all that comes out of your nether regions is golden eggs... even when it comes in brown instead of gold.

I was perusing the job offers at Blizzard:
Blizzard Entertainment - Employment Opportunities
(and the euros versions), and I think I know why WotLK's beta isn't announced yet:
Blizzard Entertainment - Employment Opportunities : Technical Director

(besides their top secret next MMO, they also appear to be busy preparing the russian version of WoW)

[Ukerric]

Originally Posted by RiskyChris

God, how the fuck does the stock market work?

Actually, that operation is very straightforward. Compared to some.

Ok, let's start counting:

- Company VUG is valued at 8.1 billion $, all in shares of A.
- Company Activision is valued at 10.5 billion $, all in shares of B.
- Company VU owns 100% of A (VUG).

Operation 1 is converting shares of A into shares of B. At the end:

- Company VUG no longer exists finantially
- Company Activision is now valued at 18.6 billion $, and is renamed Activision Blizzard
- Company VU now owns 43% of Activision Blizzard, which is a bit too little for its tastes.

Operation 2. As part of the deal, VU pays cash to Activision Blizzard 1.7 billion $ in new shares that didn't exist. In cash.

- Company VU now owns 48% of Activision Blizzard.
- Company Activision Blizzard is now valued at 20.3 billion $.

They can't create new shares any more: if you create more than 5% new shares, you must also offer those shares to the existing investors/stock market, which kind of defeats the point, which is to bring VU's share in AB to above two-third majority, or about 68%.

Operation 3: VU now puts a public offering, for 4.1 billion $ for 38% of the shares of AB still on the market (which translates into 20% of the total shares of AB, after adding to the pot the old shares of VUG, plus the newly issued shares of Activision Blizzard reserved for Vivendi Universal).

- Company VU now owns 2/3rd majority in Activision Blizzard, and doesn't need to worry about controlling minorities.

That's a standard merger operation, not too complicated.

[Vatoreus]

My dad's company (Pilgrim's Pride) did this last December with Gold Kist. They bought a majority stock which means they own the company.