If you thought merging Vivendi and Activision to form Activision Blizzard was done at a whim, you couldn’t be more mistaken. Careful planning and a great deal of money was involved for this union to take place. Find out in the full article what lengths had to be gone through to finance this marriage.
When publisher Vivendi announced that it was merging with fellow giant Activision, shockwaves were sent rocking into the far reaches of the industry. The new business entity would later be known as Activision Blizzard, and Vivendi is sealing the deal with a US$ 5.13 billion loan that it just secured from a pool of banks.
The money that Vivendi borrowed would be used to complete its acquisition of Activision and French telecom company Neuf Cegetel. The loan is set to flow in by way of two major increments.
The first of the two is a “bridging loan” that is worth US$ 2.2 billion. Vivendi will pay back the banks it loaned from once the Neuf Cegetel deal is secure. The next part is a US$ 2.93 billion “revolver” loan that will be given to Vivendi over six years.
Some analysts are predicting as early as now that industry leader Electronic Arts will get a big run for its money once Activision Blizzard starts rolling. Vivendi owns the Warcraft, Starcraft, and Diablo franchises while Activision has the likes of the Guitar Hero and Call of Duty franchises under its belt.