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The Deal: Vivendi Offloads Most of Activision

The deal for Activision values the world's largest games publisher at a 10% discount to its Thursday closing price of $15.18. It will leave the maker of Guitar Hero and Call of Duty with no majority owner for the first time in five years.

Activision will use $1.2 billion of cash on its books and $4.6 billion of debt to fund the share buyback. Bank of America Merrill Lynch (BAC - Get Report) and J.P. Morgan Chase (JPM - Get Report) will supply debt for the deal.

ASAC II has also secured equity and debt financing for its transaction. Those funds include about $50 million of equity from Activision's Kotick and Kelly. Kotick has led Activision for almost 20 years. Following the transactions Vivendi will retain a 12% stake in Activision and has agreed to a staggered 15-month lockup on its stake.

Written by Paul Whitfield.
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