Vivendi Pulling Billions From Activision for Debt?
Activision parent company Vivendi is reportedly looking to draw billions of dollars from Activision’s cash funds in order to pay its own debt. According to the Wall Street Journal, Vivendi is considering voting on pulling roughly $3 billion from Activision’s cash reserves by way of a “special dividend,” netting about $2 billion due to its 60% stake in the publisher.
Back in May, Activision reported that it has no debt and $4.6 billion in cash, meaning Vivendi’s withdrawal would take a significant chunk out of the company’s assets. Since Activision’s cash isn’t entirely held in the U.S., the Journal points out that “Activision Blizzard would have to raise debt of its own to fund such a dividend.” Specifically, “$2.7 billion of that cash is held offshore, and would be subject to U.S. taxes if repatriated, according to company filings.”