Activision Blizzard has shelled out approximately $5.83-billion (R56.5-billion) to buy back its shares from parent Vivendi, separating itself from the giant media company.
Activision Blizzard will be buying 429 million company shares, with Activision Blizzard CEO Bobby Kotick and co-chairman Brian Kelly purchasing a further 172 million Company shares for approximately $2.34 billion.
“These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi,” said Bobby Kotick. “We should emerge even stronger—an independent company with a best-in-class franchise portfolio and the focus and flexibility to drive long-term shareholder value and expand our leadership position as one of the world’s most important entertainment companies.
“The transactions announced today will allow us to take advantage of attractive financing markets while still retaining more than $3 billion cash on hand to preserve financial stability.”
The transaction is expected to close by the end of September 2013, subject to customary closing conditions.