Vivendi Finances Activision Acquisition
In order to afford the $18.9 billion Activision Blizzard merger, Vivendi has signed for $5 billion in loans.
In anticipation for the upcoming acquisitions [http://www.escapistmagazine.com/news/view/79490] of game publisher Activision and French telecom giant Neuf Cegetel, media conglomerate Vivendi has signed a €3.5 billion ($5.13 billion) loan underwritten by a group of international banks. Two billion euros will be sectioned off for the Activision deal and will be distributed to Vivendi over a multi-year timetable. This funding is in addition to Vivendi's €1 billion in cash held over from 2007 and an available €4 billion credit line.
Jean-Bernard Lévy, Chairman and Chief Executive Officer of Vivendi, commented on the deals potential for increasing shareholder value:
[blockquote]
This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector. By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry. We are excited about the opportunities for Activision Blizzard as a broader entertainment software platform. We believe this transaction will create significant value for Activision Blizzard and Vivendi stockholders.[/blockquote]
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In order to afford the $18.9 billion Activision Blizzard merger, Vivendi has signed for $5 billion in loans.
In anticipation for the upcoming acquisitions [http://www.escapistmagazine.com/news/view/79490] of game publisher Activision and French telecom giant Neuf Cegetel, media conglomerate Vivendi has signed a €3.5 billion ($5.13 billion) loan underwritten by a group of international banks. Two billion euros will be sectioned off for the Activision deal and will be distributed to Vivendi over a multi-year timetable. This funding is in addition to Vivendi's €1 billion in cash held over from 2007 and an available €4 billion credit line.
Jean-Bernard Lévy, Chairman and Chief Executive Officer of Vivendi, commented on the deals potential for increasing shareholder value:
[blockquote]
This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector. By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry. We are excited about the opportunities for Activision Blizzard as a broader entertainment software platform. We believe this transaction will create significant value for Activision Blizzard and Vivendi stockholders.[/blockquote]
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