Vivendi fails to get €1 billion credit line
The parent company of Activision/Blizzard, Vivendo, has failed in its attempt to get hold of a €1 billion credit line. You’d think with all those CoD gamers and WoW subscribers the publishing giant would have plenty of cash to be getting on with, but apparently it needed more. Unfortunately though, it’s not been able to get any of it.
Europeans should of course feel horrendously guilty as the reason for the denial is thought to be the growing debt crisis in certain Eurozone countries.
Games Industry has it that the reason for the loan in the first place is because Activision/Blizzard offered to pay $1.2 billion for EMI Group last month. Perhaps it should have sorted out its credit line before comitting to something? Still, Vivendi doesn’t own everything now – even if it can still find the money – as the deal was for a partial purchase, other companies like Sony picking up the rest.
Last month the publishing giant tried other tactics for generating cash, selling off 35 million shares for around $425 million in something the firm called a “tactical disposal with regards to our overall capital structure.”