Instead of going with that headline I could have more accurately used “This is why the world sucks at the moment”.
Vivendi is a French company who has bootloads of money for some reason that I’m honestly to lazy to google right now, the only reason I care about Vivendi is that they own 61% of Activision and therefore their name comes up quite often in the industry.
But now according to secret insider reports the bean counters at the top of Vivendi are planning a meeting to discuss whether or not to sell the stupidly profitable Call of Duty developer.
Why would any sane company sell such a cash cow? Is it because they’ve lost faith in the rinse and repeat model that Activision employs so well or that they feel the company is going to start losing market share and therefore money?
No, it’s simply that Vivendi wants more money and it wants it now. Apparently some people believe Vivendi is worth more if they split it into multiple parts instead of leaving it as one huge company and therefore it’s a better idea to decimate it now, I wonder if any of these guys have seen Meet Joe Black?
But analysts aren’t expecting this to happen as there aren’t many people out there who could buy Activision (Microsoft and EA possibly could and that would be bad). However these same analysts rather think it’s a better idea for Vivendi to force Activision to borrow a huge wad of cash then pay a dividend because they have so much cash on hand. This dividend would then make its way to Vivendi shareholders making the rich richer at the expense of Activision and therefore in the long run us.
So these morons master plan is to saddle a massively profitable company with debt to secure a quick win and yet these are the people who’s advice is taken when companies and countries fail. Is it any surprise that Europe and America’s financial affairs are so disgusting when this sort of financial dickery is even legal.
Bah humbug, I’m glad it’s Friday
Last Updated: June 8, 2012