Vivendi may force Activision Blizzard into debt with $3 billion dividend - Polidicks

[url]http://www.reuters.com/article/2013/07/22/vivendi-activision-idUSL6N0FS0OQ20130722[/url] [quote]Vivendi may push for its Activision Blizzard video games division to pay a special dividend that would net the French group around $2 billion to help it cut its debt pile, the Wall Street Journal reported on Monday. The board of Vivendi will discuss the move at a regular meeting on Monday and may press for the unit's own board members to approve it at a meeting later this week, the newspaper added. Six of eleven Activision board members are from Vivendi group or its units.[/quote] [url]http://www.forbes.com/sites/erikkain/2013/07/22/vivendi-to-force-3-billion-special-dividend-on-activision-blizzard/[/url] [quote]Activision’s conservative management strategy—the publisher has largely avoided both free-to-play and mobile, focusing on a handful of strong titles with high growth potential—has helped the publisher weather a tumultuous video game industry in recent years. Still, even with a cash stockpile of over $4 billion, the company would likely have to take on debt to pay the dividend. “We believe Activision’s management prefers to use cash to buy back stock but it may not have a choice,” Sterne Agee Arvind Bhatia says. “Activision had $4.3B in cash on its balance sheet, including $2.7B held overseas and $1.6B in the U.S. Since repatriating cash held overseas would trigger tax obligations, we believe ATVI will likely take on debt in the amount of at least $1.5B.” Of the $3 billion special dividend, $2 billion would go to Vivendi.[/quote]

so this is how activisions reign ends Vivendi Sucking the life out of it.

[QUOTE=Wii60;41562244]so this is how activisions reign ends Vivendi Sucking the life out of it.[/QUOTE] As appalling as this is, I find some fun irony in Activision being killed by having the money slowly drained from it by executives who have no idea how to make video games.

Could Acitivision even survive such a payout? [editline]23rd July 2013[/editline] [QUOTE=Wii60;41562244]so this is how activisions reign ends Vivendi Sucking the life out of it.[/QUOTE] This isn't a slow drain, this is a hyper speed suction. Something this drastic could shake the whole industry to the core.

I dislike Activision as much as the next guy, but honestly I'm hoping they're able to scramble their way out of this one. What Vivendi is doing is fucking horrible.

[QUOTE=Reds;41562292]As appalling as this is, I find some fun irony in Activision being killed by having the money slowly drained from it by executives who have no idea how to make video games.[/QUOTE] Vivendi probably has little to no influence on the decisions Activision makes. I'd imagine they only manage (hire/fire) executives/directors at Activision. If the parent company is doing micromanagement work at the "games" level, then usually that means the company is going bankrupt soon. (Eg, HMV going into administration) [editline]22nd July 2013[/editline] [QUOTE=Fangz;41562294]Could Acitivision even survive such a payout? [editline]23rd July 2013[/editline] This isn't a slow drain, this is a hyper speed suction. Something this drastic could shake the whole industry to the core.[/QUOTE] Could Activision survive? The better question would be, how successful will their next game be? Activision could probably take some loans to pay this, but if they cant return their loans with the profit they make off their games in the future, they'll go down.

[QUOTE=Angus725;41562357]Vivendi probably has little to no influence on the decisions Activision makes. I'd imagine they only manage (hire/fire) executives/directors at Activision. [/QUOTE] I know. That was the point.

[QUOTE=Angus725;41562357]Vivendi probably has little to no influence on the decisions Activision makes. I'd imagine they only manage (hire/fire) executives/directors at Activision. [/QUOTE] [QUOTE]Vivendi owns a controlling stake (63%) in Activision Blizzard[/QUOTE] I don't know what you mean? They probably have tons of control but have the common sense to not intervene.

[QUOTE=Angus725;41562357] Could Activision survive? The better question would be, how successful will their next game be? Activision could probably take some loans to pay this, but if they cant return their loans with the profit they make off their games in the future, they'll go down.[/QUOTE] Still, 3 billion simply being pulled away is no pocket change, and will probably have major repercussions to the company.

[QUOTE=Angus725;41562357]Could Activision survive? The better question would be, how successful will their next game be? Activision could probably take some loans to pay this, but if they cant return their loans with the profit they make off their games in the future, they'll go down.[/QUOTE] Well, this is the company that has Call of Duty, Skylanders, World of Warcraft, Starcraft, and Diablo in their stable. World of Warcraft brings in hundreds of millions in annual profit (last I read anyway), and mega-franchises Skylanders and Call of Duty are both getting new releases within the next 3 1/2 months. I think they'll come out of this.

Activision should just try and get it delayed until when CoD Ghosts is out.

I didn't even know Vivendi was still around! I haven't heard that name since... the Half Life/Counter Strike box sets were in stores

The problem is that if Activision goes, so does Ravensoft, which I'm friends with the co-founder's family. I'm on Activision's side for this one..

[QUOTE=GameDev;41562788]The problem is that if Activision goes, so does Ravensoft, which I'm friends with the co-founder's family. I'm on Activision's side for this one..[/QUOTE] it could end thq style where Ravensoft just goes to another company

If they go the way of THQ, then it's going to be harder for all their studios to find legit publishers. Plus they're a giant company, think of all the studios that would go under. This is kinda like when the banks screwed up and when they got bailed out - we don't want em, but what would we do without em?

dont worry guys cod:ghosts is coming out soon it'll save the day

[QUOTE=Xystus234;41563176]If they go the way of THQ, then it's going to be harder for all their studios to find legit publishers. Plus they're a giant company, think of all the studios that would go under. This is kinda like when the banks screwed up and when they got bailed out - we don't want em, but what would we do without em?[/QUOTE] We wouldn't be able to have free hayrides at the call of duty hate bandwagon emporium anymore.

Incoming 40$ dlcs for CoD Ghost, to sweeten the blow. Kids will jump like crazy and buy it...

That one time where i want the used-cars salesman that charges double, fiddles with the odometer and hits on my wife to make a decent profit... and it's just for the sake of his employees.

If Activision goes down, what's there to stop EA from taking over all the games left behind by Activision. I am pretty sure the board of Activision is pretty pissed of with Vivendi right about now.

I don't understand something: how is taking on debt better than repatriating that massive amount of cash, even if they pay the goddamn taxes?

[QUOTE=zugu;41564279]I don't understand something: how is taking on debt better than repatriating that massive amount of cash, even if they pay the goddamn taxes?[/QUOTE] Because the interest on that debt would probably be less than 5%, paying tax would be greater than what, 20%? I don't know much about tax in the US, but taking on debt is probably a much better option. [editline]23rd July 2013[/editline] Also this does not mean Activision will close down [B]at all[/B], why would Vivdendi, or any company for that matter, close down a) a profitable business or b) a company it has millions of dollars invested in

As much as activision are assholes. Id much rather them be at the top rather then EA.

ITT [img]https://dl.dropboxusercontent.com/u/3675893/fp-saves-activision.gif[/img]

[QUOTE=BCell;41563971]If Activision goes down, what's there to stop EA from taking over all the games left behind by Activision. I am pretty sure the board of Activision is pretty pissed of with Vivendi right about now.[/QUOTE] They stand to receive at least 1.5 billion dollars in debt from their parent company and you think the board is 'pretty' pissed off? We're talking at least a third of their money and almost all of the money they have in the US.

[QUOTE=Wii60;41562244]so this is how activisions reign ends Vivendi Sucking the life out of it.[/QUOTE] Reminds me of when Vivendi bought Sierra. First thing that happened after that? They closed the Dynamix studio, which had made some pretty amazing (and successful) games. God damn it Vivendi

[QUOTE=Reds;41562292]As appalling as this is, I find some fun irony in Activision being killed by having the money slowly drained from it by executives who have no idea how to make video games.[/QUOTE] Actually it's not executives draining the money, it's share holders. Vivendi being the biggest one. [QUOTE=Rangergxi;41562389]I don't know what you mean? They probably have tons of control but have the common sense to not intervene.[/QUOTE] Sure, but they don't have executive control, or at least not directly. People need to remember that a company basically has shareholders and a board of directors, who tend to be very often in opposition to the shareholders.