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  • edinamatt edinamatt Nov 17, 2012 2:35 PM Flag

    Vivendi Strategic Course of Action - Minority Activision Share Buy Out

    Well, this is interesting, but assuming your source information is correct, how does this support your assertion that Vivendi will "be forced to consolidate" is ATVI shares and will pay "14 to 15" dollars for them??

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    • Maybe "forced to consolidate" is a little strong. My only point was that when Vivendi divests all three of its telecom businesses, it will only have 100% of Universal; 100% of Canal and 62% of Activision.

      Vivendi will want to consolidate the cash flow of Activision to pay out dividends and probably fund some acquisitions in media and content, which can only happen if it owns 100% of the Activision shares, hence the desire to put a tender forward for the remaining 421M Activision shares that it does not own.

      Regarding the price it will offer for the tender, it seems that if you back out the the $3/share, 11-12X EBITDA seems like a market rate, but I could be wrong. However, it will not be $11/share.

      Additionally, if you recall after the original merger in 2008, remember there was a tender made at that time by Vivendi for about $26/share, pre split, which occurred after the tender failed.

      Regarding the present processes with GVT, SFR and Maroc, they are real search on Google. The Financial Times in Europe is covering...

      Sentiment: Strong Buy

 
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