Activision Blizzard goes independent

djkav · 27 Jul 2013 at 14:01

Could this be a new future and direction for Activision Blizzard?

Activision Blizzard is to become an independent company as CEO Bobby Kotick leads an investor buyout from Vivendi worth $8.2 billion.

The publisher of World of Warcraft and Call of Duty will buy 439 million shares from Vivendi for $5.83 billion. In addition, an investment group led by Kotick and co-chairman Brian Kelly, will purchase 172 million shares worth $2.34 billion.

With Vivendi no longer a major stakeholder, Activision Blizzard becomes an independent company led by Kotick and Kelly, whose investment group also includes Chinese operator Tencent, Davis Advisors and Leonard Green & Partners.

source

StriderX · 27 Jul 2013 at 14:02

Vivendi is actually CASHING OUT, this is just to make it look good.

The reasons are that WoW numbers are too low for the level of investment Vivendi found suitable, the other games are obviously money-makers, but Vivendi are not stupid, as like any super-corp, as soon as the gold mine starts lowering its yields, they just close it down.

Jokester · 27 Jul 2013 at 14:03

Could well be that they see it that WoW was high tide mark for Blizz and not something they will be able to replicate going forward.

G-MAN2004 · 27 Jul 2013 at 14:18

I thought Vivendi was Activision Blizzard? :confused:

Edit: Oh, the parent company, Vivendi...

Semiskimmed · 27 Jul 2013 at 14:53

Bobby Kotick, the saviour of gaming...

Expect even more expansions, DLC and just generally rinsing out of all their franchises for those profits. Not that theyve not been doing it already but with his own money invested, its bound to get worse.

Cant say i blame Vivendi at all though!

Omaeka · 27 Jul 2013 at 14:55

Next expansion will be out by the end of the year, for the cheap price of £59.99 with a £29.99 subscription!

arknor · 27 Jul 2013 at 15:03

expect subscription prices to rise lol

djkav · 27 Jul 2013 at 15:36

I quit WoW in Jan 2013.

I'm just waiting to see about Everquest Next and WildStar

Strife212 · 27 Jul 2013 at 15:58

StriderX said:
Vivendi is actually CASHING OUT, this is just to make it look good.

The reasons are that WoW numbers are too low for the level of investment Vivendi found suitable, the other games are obviously money-makers, but Vivendi are not stupid, as like any super-corp, as soon as the gold mine starts lowering its yields, they just close it down.

WoW is a cash cow still, purely because there is no investment, the running costs are so low compared to takings.

Jokester · 27 Jul 2013 at 16:02

Share price will reflect that and perceived future incomes though. If Vivendi are selling it is realistically due to them thinking that those expectations aren't acheiveable for the future and they are better just to sell up.

qotsa · 27 Jul 2013 at 16:15

djkav said:
I quit WoW in Jan 2013.

I'm just waiting to see about Everquest Next and WildStar

Exactly the same here, even when I quit

Naff8000 · 27 Jul 2013 at 17:01

StriderX said:
Vivendi is actually CASHING OUT, this is just to make it look good.

The reasons are that WoW numbers are too low for the level of investment Vivendi found suitable

I don't understand this. Wow is still the ultimate gaming cash cow by a mile.

Moothead2 · 27 Jul 2013 at 17:17

Naff8000 said:
I don't understand this. Wow is still the ultimate gaming cash cow by a mile.

It's subscriber numbers are dropping like a stone. They lost 1.3 million subscribers between February and May apparently. It's dropped from it's 12 million peak in 2010 to the current 8.3 million subscribers they have now. They've clearly weighed up the benefits and drawbacks of selling now or selling later and they've came to the conclusion there's more money/safer in selling now.

FARGO · 27 Jul 2013 at 17:31

How much is a monthly sub? 8 million people paying X amount each month is still insane!

Semiskimmed · 27 Jul 2013 at 17:37

Moothead2 said:
It's subscriber numbers are dropping like a stone. They lost 1.3 million subscribers between February and May apparently. It's dropped from it's 12 million peak in 2010 to the current 8.3 million subscribers they have now. They've clearly weighed up the benefits and drawbacks of selling now or selling later and they've came to the conclusion there's more money/safer in selling now.

its 7.3million now according to mmo champ.

£8.99 a month is the current pricing.

Devlish · 27 Jul 2013 at 17:46

StriderX said:
Vivendi is actually CASHING OUT, this is just to make it look good.

The reasons are that WoW numbers are too low for the level of investment Vivendi found suitable, the other games are obviously money-makers, but Vivendi are not stupid, as like any super-corp, as soon as the gold mine starts lowering its yields, they just close it down.

err no. Vivendi have 17 billion debt and need cash right now and as of July no longer needed Activision board approval to force cash payouts. They have been making big noises about pulling cash out of Activision and its 4 billion pile so I guess this is a reaction to that. They wanted cash and theyre getting it and activision is taking the blow to get the control back.

Semiskimmed said:
its 7.3million now according to mmo champ.

£8.99 a month is the current pricing.

I think theres some variation in asia that doesnt make that figure quite as shiny, but it still blows away everyone else of course.

djkav · 27 Jul 2013 at 17:49

WoW should have gone F2P already.

The engine is creaky and old. The graphics need a reboot. I guess they'll still milk it till its dry.

Randomface74 · 27 Jul 2013 at 18:00

I think the recent games haven't done so well because of investor meddling. So it's probably the CEO wanting control back too.

bJN · 27 Jul 2013 at 18:42

Vivendi are in serious debt and cash out due to a board agreement with Activision, and people think it's Activision Blizzard wanting to take more control? :rolleyes:

Pawnless Endgame · 27 Jul 2013 at 19:24

FARGO said:
How much is a monthly sub? 8 million people paying X amount each month is still insane!

Last time I played, it was £9/month direct debit or £8/month if you paid quarterly. I stopped in late 2010 though shortly after Cata came out. Being a vanilla (pre-2007) player, WoW was well past its sell-by date for me in 2010. Only a "WoW II" with a modern graphics engine and original instances (BWL, AQ40 etc) will get my custom from Blizz again.