Activision Could be Sold by Parent Company

June 7, 2012Written by Zak Islam

Vivendi, who is the parent company of Activision Blizzard, may sell its 61 per cent controlling ownership of the Call of Duty publisher.

Bloomberg‘s sources suggest that the Paris based multimedia conglomerate is contemplating to sell its entire equity in Activision in whole or split it. Spokespersons for both Activision and Vivendi have declined to comment.

To add credence to the report, Vivendi has experienced a difficult year in 2011 with its share price decreasing by 28 per cent. The company has, in order to keep its credit rating high, previously sold 60% of its shares during November, 2011.

Activision, though, has had a more positive financial outlook last year. The industry’s largest game publisher reported revenue of $4.76 billion, with operating profit standing at $1.3 billion. Shares in the company, meanwhile, have risen 4.5% in 2011, thus valuing them at $13.4 billion.

Claudio Aspesi, an analyst at Sanford C. Bernstein & Co., recommended that Vivendi holds its stock:

A single sale is actionable, but it risks being a short- term solution. Six to 12 months from now, questions will pop up again. What happens next? Why does it makes sense to keep the rest of the assets together? Is there any strategy?