Vivendi in Big Activision Deal
In case you missed last nights post, video game maker Vivendi says it will acquire a controlling interest in Activision through a transaction that the companies are valuing at $18.9 billion. The French media and telecom colossus said Sunday that it will merge its video game operations with Activision, maker of titles like Guitar Hero and Call of Duty and rename the venture Activision Blizzard.
The deal calls for shares of Vivendi Games, seller of titles like World of Warcraft and Crash Bandicoot to be converted into 295 million new shares of Activision stock at a price of $27.50 a share, according to a joint press release. Vivendi will also buy 63 million shares of Activision stock at $27.50 for a 52% stake in the new company. In total, Vivendi will acquire the position for $9.8 billion, implying the other 48% of the new firm is worth an additional $9.1 billion.
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