Activision and Vivendi Games Combination Set to Move Forward
Activision held its special meeting of stockholders earlier today to vote on issues relating to Activision's upcoming combination with Vivendi Games. According to Activision, "All of the proposals required to effect the transaction received more than 92 percent of the shares voted." As such, The transaction should be completed tomorrow according to plan (or as soon thereafter as possible).
Activision's brief summary of the transaction is as follows: "Activision and Vivendi Games will combine their businesses through the merger of a newly formed, wholly-owned subsidiary of Activision with and into Vivendi Games. As a result of the merger, Vivendi Games, the parent company of Blizzard Entertainment and Sierra, will become a wholly-owned subsidiary of Activision. Vivendi will receive approximately 295.3 million newly issued shares of Activision common stock. Concurrently with the merger, Vivendi will purchase approximately 62.9 million newly issued shares of Activision common stock at a price of $27.50 per share for a total of approximately $1.7 billion in cash, resulting in a total Vivendi ownership stake in Activision Blizzard of approximately 52% on a fully diluted basis and approximately 54% of shares outstanding. As of the closing of the transaction, Activision will be renamed Activision Blizzard and will continue to operate as a public company traded on NASDAQ under the ticker ATVI."
While described as a merger, this is really an acquisition of Activision by Vivendi, with Vivendi owning more than half of the outstanding shares of the combined business.