WoW Down to 7.7 Million Subscribers
Activision Blizzard's press release states that World of Warcraft is down to 7.7 million subscribers. This is a loss of 600,000 subscribers, down from 8.3 million last quarter. A call about the shares purchase will take place on July 26 at 8:30 AM ET, so check back then for any more comments on subscriber numbers. The regular earnings call will take place on Thursday, August 2nd.
Activision Blizzard Purchases Shares From Vivendi
Activision Blizzard is purchasing 429 million shares from Vivendi for $5.8 billion. This purchase is financed with $1.2 billion of cash that was on hand and $4.6 billion of debt proceeds, leaving them with a $1.4 billion of net debt at the end of the deal in September 2013.
An investment group that includes Bobby Kotick and Brian Kelly, who put up $100 million together, as well as Tencent and other partners is purchasing 172 million shares for $2.3 billion. This group will own 24.9% of the company and Vivendi will retain ownership of 83 million shares (12%) of the company.
