Why On Earth Is Vivendi Selling Activision-Blizzard?

Black_OpsII

Activision is the gaming industry’s biggest publisher and has in its coffers gaming’s most valuable property: Call of Duty. So why on earth is parent company Vivendi looking for a buyer of its 61 stake percent in the company? That’s an estimated worth of $8.1 billion

The answer is somewhat complicated and doesn’t make much sense.

“Moody’s Investors Service and Fitch Ratings warned Vivendi this past week that its debt ratings could be threatened if it doesn’t reduce liabilities. Fourtou on June 28 ousted Chief Executive Officer Jean-Bernard Levy, who had resisted major changes in Vivendi’s structure,” says Bloomberg in a report.

“A shifting market for video games may limit Activision’s attraction to buyers,” it added.

Thing is, Activision has seen profits in the billions year-on-year, and the company stuck rose 4.4 percent to $11.99 last Friday. Vivendi on the other hand has properties that have seen consecutive yearly losses – so why sell the company that’s bringing home the bacon?

Maybe it’s because the games industry as we know it is changing, especially with the disruption iOS and Android games have caused. Apparently, there are not many prospective buyers in such a volatile market.

I don’t know how this will all turn out, but gamers should keep a close eye at what happens… there’ll be huge implications depending on how this goes. Let’s hope the morale at Activision-Blizzard is still high.

Via Digital Download.

Thanks, Benzo!

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Author: Ernice Gilbert View all posts by
Ernice Gilbert here. Founder and Editor-In-Chief of Gamesthirst. Thanks for stopping by, make yourself at home!

4 Comments on "Why On Earth Is Vivendi Selling Activision-Blizzard?"

  1. benzo July 2, 2012 at 10:35 am -

    I think it has more to do with the fact that Vivendi, the parent company, is in a state of financial upheaval. They arent making a lot of money company wide and may soon file for bankruptcy. COD is a huge franchise,but not big enough to pay the bills for the entire Vivendi company. Plus, from a business standpoint, you buy low and sell high. Blizzard Activision is probably more profitable now than ever. So selling it now would be a huge windfall for Vivendi. Its all about making $$$,so I dont think we need to worry about the fall of console games and the take over from mobile games. Because just look at Zynga…those games arent drawing the same people that made everyone switch to the casual market. So gamers dont fret, everything will be cool.

  2. Ernice Gilbert July 2, 2012 at 11:03 am -

    Good analysis there, Benzo! Let’s just hope the right firm buys Activision, and not MS…. or Apple…. or some other company that’ll want to make all the publisher’s products exclusive to their platform.

  3. nick July 3, 2012 at 5:10 am -

    not to mention facebook.
    its really funny how every single time something new comes out, it explodes, than it plummets so fast!
    and every time it happens people start running around with their tin foil hats and coat hooks screaming of the apocalypse!
    sad though, if vendi does go under who will bring back crash bandicoot?
    SONY NOWS YOUR CHANCE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    ive been dreaming for years that ND would go back to the franchise that created them!
    now, maybe, just maybe, my dreams are coming true!

  4. Ernice Gilbert July 3, 2012 at 6:17 am -

    I hope Acti/Blizz becomes more stable when this whole mess is over.

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