No Buyers for Activision Blizzard – Video Games Update
Vivendi is having trouble finding a buyer for its 61 percent stake worth $8.1 billion in Activision Blizzard as interested parties do not have the funds for a cash purchase.
Vivendi announced last month that it was looking for potential buyers for its majority stake in Activision Blizzard and preferred to sell the company to a single buyer rather than selling the shares in the open market. Vivendi did however state that if there
were no buyers, the company would have no choice but to dispose of Activision Blizzard in the stock market.
Vivendi was eyeing Microsoft, Take Two, Time Warner, Disney, Nexon and Tencent as potential parties which would be interested in acquiring the giant publisher. Time Warner, Take-Two and Disney have refused the offer as they are not interested in what the
giant publisher brings to their portfolio.
Microsoft have also refused as the company stated that it is not “actively considering a bid”. The reason behind it is Activision’s Call of Duty (COD) brand which generates almost half its sales on the Playstation 3. Making it exclusive to the Xbox 360 would
benefit the console but hurt the franchise as multiplatform shooters like Battlefield 3 and Medal of Honour would take the first person shooter throne.
Another reason why companies are hesitant to purchase Activision Blizzard is the general market trends as overall video games related sales have generally decreased when compared to last year. Today, when all it takes is just two mediocre games with poor
sales to bust an ‘AAA’ developer, a $8 billion purchase is a big risk that many companies are not willing to take.
The controversy surrounding Blizzard’s Diablo 3 doesn’t help either. Many gamers are also of the view that the Call of Duty brand has peaked and is now on its way down. Gamers are getting bored with Activision reusing the same engine again and again for
a COD game each year when competitors like Battlefield 3 and Medal of Honour have moved on to next generation engines.
Nexon and Tencent have shown interest in purchasing the publisher but apparently they cannot afford a cash purchase. It seems that Vivendi will have no other choice but to sell the shares in the open market which will most likely be at a loss and not all
the shares will be sold. The fact is that Vivendi might lose control over the publisher while still owning shares it can’t get rid of.
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