By Michael Calia
Vivendi SA (VIV.FR) said Friday it had completed its divestment
of a large portion of its stake in videogame maker Activision
Blizzard Inc. (ATVI).
The move comes a day after the Delaware Supreme Court ruled
Vivendi's exit could proceed. Last month, Delaware's Court of
Chancery had placed an injunction on the transaction after
shareholders had sued on the grounds that they were entitled to
vote before the transaction went through.
The stake sale netted $8.2 billion for Vivendi, which will
retain 83 million shares, or a 12% stake, in Activision.
Vivendi sold the stake as part of its strategy to become a
smaller media company. It has said it plans to use the proceeds of
the transaction, along with another potential deal to sell its
stake in African phone operator Maroc Telecom (IAM.CL), to pay down
debt, which would allow a spinoff of French phone operator SFR.
"This divestment represents a major step forward in the
strategic review Vivendi has been conducting for the last year,"
Vivendi said. "It provides the group with greater financial
flexibility at a time when it is studying a demerger plan in order
to create significant shareholder value."
For Activision, the transaction added about $1 billion in value
to the videogame company when it was announced in July. Activision
and Vivendi had argued that the injunction created uncertainty
about the deal that put at risk the prospects of Activision
shareholders taking more control of the company.
Activision shares were inactive at $17.08 after hours. The stock
is up 61% this year.
Write to Michael Calia at michael.calia@wsj.com
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