The Financial Times (free account needed to read) reports that French telecom giant Vivendi – which has a 61 per cent majority stake in Activision Blizzard – is looking to raid the publisher's $4 billion balance sheet having failed to sell its stake over the past year.
Interested parties are believed to have included Microsoft and Disney but to date no deal has been forthcoming. Vivendi is now considering a tender offer from Activision for part of the company's stake. This share buy-back would be funded directly from Activision's balance sheet or through a debt offering, sources close to the talks report.
As of tomorrow, the Financial Times notes that Vivendi will gain new powers which will enable them to force Activision to pay a sizeable dividend. Under the current rules regulating the company Vivendi must have the support of Activision's independent directors prior to any divident payment that would see the publisher's net debt rise above $400 million.
However, these rules expire Tuesday, July 9th – tomorrow – which will allow Vivendi to force through the dividend payment from Activision unchallenged.
Vivendi and Activision have not yet commented on the these reports.
Stories about Vivendi's bid to sell its stake in Activision first emerged last summer while reports of Activision's plan to buy its way out of Vivendi's ownership surfaced in May.
