You know there is something massively wrong with the world and the financial markets in particular when you make a game that pulls in over a billion dollars in 16 days and yet are still refused credit.
And yet that is what is happening with Vivendi SA, the parent company of Activision who, according to reports, were recently denied an application for a loan of over a billion Euro’s.
Mind you the fact that they are trying to secure such a massive loan is partly why the world is in such a mess in the first place.
But having said that you would think a company with an amazing track record, billions of dollars in guaranteed sales and Diablo 3 in the pipeline wouldn’t bat an eyelid when trying to get credit.
However according to Bloomberg the European financial crisis is starting to hit them hard and is pushing up the cost of lending further than Vivendi are willing to go. They want a loan at 75 basis points but the banks won’t offer less than 90.
Vivendi needs the money to pay for the EMI Group which it’s offered 1.2 Billion pound for so it’s not like it’s trying to avoid bankruptcy but if the banks would loan the money they’ll need to start looking elsewhere to secure that sort of cash and that could lead to even greater pressure on Activision to shove another Call of Duty out the door.
It’s a strange world we live in and yes the web of companies is quite scary, Modern Warfare 3 is partly made by Sledgehammer Games who were contracted by Infinity Ward who are owned by Activision in partnership with Blizzard who are both owned by Vivendi.
And yes this is the same Vivendi that you remember seeing the logo of when you loaded up Leisure Suit Larry. Makes you feel great doesn’t it. You grew up playing some dodgy game from a small studio and now you’re doing okay and they rule the planet. Someone pass me the pills please.
Last Updated: December 15, 2011
