Playing the long game

18 July 2012 By Quentin Webb

Shareholders in the French conglomerate will be glad it’s mulling options for its $8 bln controlling stake in the U.S. software developer. The snag is the sheer size of the desired deal. Vivendi may have to sell the holding in pieces – or simply wait for a stronger M&A market.

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Vivendi, the French media and telecoms conglomerate, has started testing the appetite of possible bidders for its video game business Activision Blizzard, Reuters reported on July 6, citing sources close to the situation. Six days later Chairman Jean-Rene Fourtou told Bloomberg a sale of the stake was a “possibility”.
On July 17, the Wall Street Journal reported Goldman Sachs and Barclays were helping Vivendi assess its options, and said bankers had contacted a range of suitors, including other gaming companies and private equity firms.
An option where Activision would buy back all or part of Vivendi’s stake has also been considered by the two companies, the WSJ added, a route that might require funding from private equity or other outside investors.
Shares in Activision rose 2.1 percent by 1418 GMT on July 18, to $12.33. Vivendi shares stood 1.4 percent higher at 15.81 euros.

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