News

Activision – Parent Company Plans to Draw Billions of Dollars as a ‘Special Dividend’

2

Vivendi, the parent company of Activision, has seen better days. The company is reportedly looking at about $17.3 billion in net debt to their creditors and they are now looking to raise money through various avenues, including selling their stake in Maroc Telecom, valued at about $5.7 billion, as well as a planned $3 billion withdrawal from Activision. This news comes after reports last year that Vivendi was looking to offload Activision.

Activision issued a statement back in May revealing that they had no debts and about $4.6 billion in cash. A withdrawal as big as the one planned by Vivendi could cause major issues within Activision Blizzard, which will reportedly need to take out loans of its own in order to make the withdrawal possible. This is mainly due to $2.7 billion of the total cash being held overseas. The transfer of this money to Vivendi would make it subject to US Tax laws, costing the company a fortune in extra tax over and above the already massive withdrawal.

The coming days will hold more news on this matter, so make sure to check back to OnlySP for all the latest coverage.

Source: IGN

Michael White
I'm a 17 year old high school student from South Africa. In addition to writing for OnlySP, I have a blog at IGN and a website at michaelwhitefreelancer.wordpress.com. You can also follow me on twitter @MikeTGZA.

Trusting the Player With the Gameworld – Gone Home | Interview

Previous article

Steam Midweek Madness – 23/07/13

Next article

2 Comments

  1. I may not really be a huge fan of Activision, but they are operating in the green right now, and I feel like this withdrawal would be a BAD move on Vivendi’s part. I for one, though, think that Destiny is going to be a good game and make a lot of people like Activision again, increasing their revenue again and allowing CoD to slip in sales without the execs of Activision sweating bullets.

    1. The problem is that Vivendi s a huge business, with many different ‘child companies’, of which Activision is only one. Vivendi has to find some way to get the money to pay off their debts, but the only way they can do that is by either selling their assets (in the form of child companies) or withdrawing cash from these child companies. They originally tried to sell Activision, and there were reports that Activision actually wanted to buy themselves away from Vivendi and become an independent company, but it seems that the negotiations broke down. This leaves them with only the choice of withdrawing cash. It’s harsh but true.

      I do however hate that Vivendi allowed themselves to get to the point where they are 17 billion dollars in debt. It’s quite ridiculous. Hopefully Activision will be able to survive if the withdrawal goes through, but it will certainly put strain on them.

Comments are closed.

You may also like