Vivendi faces trouble offloading Activision stake, report says
The company, which owns an $8.1 billion stake in Activision, has tried to get Microsoft to bite, but so far, has failed.
Vivendi is working on offloading its 61 percent stake in Activision, according to a new report.
The company has already contacted some companies to take its $8.1 billion stake in Activision, but so far, no firms have taken the bait, Bloomberg is reporting today, citing sources. The news outlet says that Vivendi tried setting up a deal with Microsoft, but the software giant has, for now, decided against it. Disney has also declined a deal offer.
Vivendi bought a stake in Activision back in 2007 for $1.7 billion. Since then, the company has watched Activision Blizzard become the world's largest game maker, thanks in large part to the wildly popular Call of Duty franchise. Vivendi has also presided over a 28 percent gain in Activision Blizzard's shares over the last five years.
However, Vivendi has faced some trouble as its debt continues to rise. Both Moody's and Fitch Ratings have informed Vivendi that its debt rating could be cut if it doesn't start making some changes to its operation, according to Bloomberg. The obvious choice would be to offload its assets in Activision and increase cash flow.
Interestingly, Vivendi reportedly only wants cash in any deal it might make with a potential suitor. If it can't find a company to buy up its stake in Activision, it could sell its shares on the open market, according to Bloomberg. Either way, it appears the company is inching closer to making a move.
CNET has contacted Activision for comment on the Bloomberg report. We will update this story when we have more information.