Vivendi closes finance for Activision deal

The completion of the Activision Blizzard deal has moved a step closer with the news that Vivendi has secured funding to the tune of EUR 3.5 billion, in "anticipation of financing requirements associated with the acquisitions of Activision and Neuf Cegetel," a company statement read.

The funding, made up from a EUR 1.5 bridging loan tied to the French telecoms company Neuf Cegetel deal, and a revolver facility of EUR 2 billion available over time, will supplement the existing EUR 4 billion credit facility and the company's EUR 1 billion cash reserve.

In total that means that Vivendi will have EUR 8.5 billion available for the two deals, an amount which "will enable Vivendi to meet its future commitments with complete security and flexibility."

The Activision Blizzard deal will bring together some of the most successful console gaming properties, such as Call of Duty and Guitar Hero, with the most successful MMO property, World of Warcraft.

Vivendi, who will own a majority stake in the new company, will look forward to a lucrative combination of existing revenues with additional opportunities on as-yet-unannounced titles, such as a new Blizzard MMO game.

The overall Activision Blizzard deal is expected to be completed by the summer of 2008, although GamesIndustry.biz understands that decisions on staffing arrangements for the current Vivendi Games and Activision businesses following the merger are yet to be announced.