Vivendi has sold its remaining shares in Activision Blizzard for $1.1bn to an unknown financial institution.
Previously a majority shareholder in the California-based videogame company, the French Media Group has now sold its remaining 5.7 per cent stake “in view of the evolution of the Activision Blizzard stock price,” which has almost doubled in the last year.
Vivendi – Paris headquarters
Share prices at Activision Blizzard have rocketed over the last 12 months due to strong physical and digital sales of some of its major franchises, including Call of Duty and Skylanders.
Vivendi also plans to unwind its hedge with Activision Blizzard, recouping a $400 million cash deposit in the process as it continues to refine its digital strategy to focus on content distribution platforms, TV and music operations.
The press release reads: “The hedge was set up in June 2015 and covered 100% of the value of the Activision Blizzard shares, denominated in US dollars. It was accomplished using a zero-cost collar with a maximum term of 18 months”.
The Paris-based entertainment and media company still holds interests within the gaming industry, owning a 10.39 per cent stake in French gaming giant, Ubisoft, and a 26.69 percent stake in mobile game maker, Gameloft.
In October 2015, Vivendi stated that it hadn’t ruled out a takeover bid for Gameloft, who has a game distribution network in over 100 countries.
Source: Press release