Activision Blizzard shares drop following Vivendi sale reports
Activision Blizzard shares have dropped following reports that parent company Vivendi is considering selling it off later this month.
Activision and Vivendi first signed an agreement
to combine Vivendi Games, Vivendi's interactive entertainment business, with Activision back in 2007, creating the world's largest pure-play online and console game publisher.
According to Bloomberg, Vivendi will discuss
the part or full sale of the Call of Duty
and World of Warcraft
house during an investor meeting on June 22, as the Paris, France headquartered company considers what to do with its 61 percent stake in Activision.
Vivendi chairman Jean-Rene Fourtou is eager to sell Activision, says Bloomberg's sources, as a move to unlock value from assets that are currently discounted, due to the holding structure within the company.
The company has suffered a 28 percent slide in stock price over the past 12 months, and hence is looking for ways to reserve its finances.
Since the report appeared earlier today, Activision Blizzard's share price has dropped by 3.3 percent to $11.70 per share, while Vivendi's has jumped 3.8 percent to $13.61 per share.
Activision Blizzard most recently beat expected financial results
for its fiscal first quarter, despite seeing revenues fall by more than 20 percent.