The lights are on
Yesterday the courts lifted a temporary injunction threatening to demolish the Activision buyout of now-former parent Vivendi. Today the deal has been sealed, and Activision is officially free of its debt-plagued parent.
The stock buyout was orchestrated to include an internal buy-back of $5.83 billion in shares. An additional $2.34 billion in shares has been purchased by an investor group led by Activision CEO Bobby Kotick and co-chairman Brian Kelly. The two contributed a combined $100 million to the effort.
Activision financed its purchase with $1.2 billion in funds held domestically and another $4.6 billion in financing from Bank of America, Merrill Lynch, and J.P. Morgan. The deal was temporarily blocked by an investor claiming that Kotick and his group had unfairly enriched themselves with the deal.
Our TakeThe lifting of the injunction and the subsequent rush to complete the deal put Activision, Kotick, and Kelly in good stead with regard to these lawsuits. Additionally, other investors are now protected, as Vivendi is completely out of the picture (and can't bleed Activision dry).
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