Diablo® III

Vivendi voting to put Blizzard into debt

http://www.vg247.com/2013/07/22/vivendi-to-vote-on-activision-blizzard-cash-grab-today-rumour/

http://www.nasdaq.com/article/vivendi-board-to-discuss-activision-blizzard-dividend-monday-sources-20130721-00005

"At a board meeting on Monday, Vivendi will discuss plans aimed at extracting $3 billion from its cash-rich Activision Blizzard ( ATVI ) videogame subsidiary through a special dividend, according to people familiar with the matter."

"Activision Blizzard would have to raise debt to fund such a dividend, because it does not have enough cash in the U.S. to pay it, the people familiar with the matter said."

"Some people familiar with the matter said the cash payout was not the preferred option of Activision Blizzard management and Chief Executive Bobby Kotick, who has tried to use Activision's cash pile to buy out Vivendi."
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07/22/2013 09:55 AMPosted by Integral
Activision Blizzard would have to raise debt to fund such a dividend, because it does not have enough cash in the U.S. to pay it, the people familiar with the matter said."


07/22/2013 09:55 AMPosted by Integral
because it does not have enough cash in the U.S. to pay it


cash in the U.S. to pay it


Key words: cash in the U.S.
Many corporations have most of their cash off-shores to avoid steep taxing in the U.S.
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07/22/2013 10:06 AMPosted by Viss
Activision Blizzard would have to raise debt to fund such a dividend, because it does not have enough cash in the U.S. to pay it, the people familiar with the matter said."


because it does not have enough cash in the U.S. to pay it


cash in the U.S. to pay it


Key words: cash in the U.S.
Many corporations have most of their cash off-shores to avoid steep taxing in the U.S.


Many corporations is not explicit in ATVI. Even if this was true, it does not mean ATVI will have enough off-shore cash to prevent going into debt. This nothing but theoretical.

Let's deal with what we do know, and not what we want to believe.
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"Cash Grab" is a disingenuous term as Vivendi owns majority stake in ActiBlizzard and generally has say in their financial operations via seats on their board. ActiBlizz is performing well on their balance sheets as opposed to Vivendi's other investments. This kind of thing happens, it's unfortunate but it is not theft.
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Vivendi has been a cancer to Blizzard. ActiBlizz really needs a divorce from that failed marriage.
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07/22/2013 10:12 AMPosted by Integral






Key words: cash in the U.S.
Many corporations have most of their cash off-shores to avoid steep taxing in the U.S.


Many corporations is not explicit in ATVI. Even if this was true, it does not mean ATVI will have enough off-shore cash to prevent going into debt. This nothing but theoretical.

Let's deal with what we do know, and not what we want to believe.


According to Forbes, Viss is right. Activision has 4.3 billion in cash, but 2.7 of it is overseas.
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07/22/2013 10:12 AMPosted by Integral






Key words: cash in the U.S.
Many corporations have most of their cash off-shores to avoid steep taxing in the U.S.


Many corporations is not explicit in ATVI. Even if this was true, it does not mean ATVI will have enough off-shore cash to prevent going into debt. This nothing but theoretical.

Let's deal with what we do know, and not what we want to believe.


"Even if this was true" ? It IS true. Ever looked at APPLE? The GREAT majority of their funds are off-shore, and MANY other companies do the same, including Blizzard. It's not something I just made up. Did you even read the article that you provided ?

Activision Blizzard had $4.3 billion in cash and cash equivalents at the end of March, but $2.7 billion of that cash is held offshore, and would be hit with U.S. taxes if repatriated,

Read more: http://www.nasdaq.com/article/vivendi-board-to-discuss-activision-blizzard-dividend-monday-sources-20130721-00005#ixzz2ZnTujgd6


right from the article you linked.
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I requested a sticky on this. Its big news.
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Many corporations is not explicit in ATVI. Even if this was true, it does not mean ATVI will have enough off-shore cash to prevent going into debt. This nothing but theoretical.

Let's deal with what we do know, and not what we want to believe.


"Even if this was true" ? It IS true. Ever looked at APPLE? The GREAT majority of their funds are off-shore, and MANY other companies do the same, including Blizzard. It's not something I just made up. Did you even read the article that you provided ?

Activision Blizzard had $4.3 billion in cash and cash equivalents at the end of March, but $2.7 billion of that cash is held offshore, and would be hit with U.S. taxes if repatriated,

Read more: http://www.nasdaq.com/article/vivendi-board-to-discuss-activision-blizzard-dividend-monday-sources-20130721-00005#ixzz2ZnTujgd6


right from the article you linked.


So let's say Vivendi grabs $3 BILLION dividend from ATVI, which they have $1.6 billion on hand in the USA right now. Now they must repatriate not just enough money to pay their U.S. debt also enough money to maintain operations in the U.S. (they have offices in other nations too by the way.)

Not just that but they'll be taxed for all this repatriated money. That means more money is lost in the equation. They would only have a fraction of resources to not just maintain day to day operations but to prevent Vivendi from dipping their hands into ATVI even further.

Let's not forget how Vivendi has been trying to sell of ATVI for years now. If Blizzard lacks the liquidity to fight off their big brother right now, how much worse do you think this will get later?
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07/22/2013 10:06 AMPosted by Viss
Many corporations have most of their cash off-shores to avoid steep taxing in the U.S.


Only on paper, most companies use various loopholes in the tax code to avoid them. Sure, the numbers on the books put the US tax rate among the highest in the developed world, but the amount companies actually pay puts the US in the bottom 1/3rd of those countries.

Take Apple, for example. They're pulling off a scheme, completely legal mind you, to create debt to pay their investors billions and then use their mountains of cash to buy off the debt. Since they're buying off a debt those dollars won't be taxed. In the end they'll avoid paying taxes on tens of billions of income -- income you and I paid to their store. Which means our schools, roads, bridges, police, etc. won't get a dime from it. But if you're an Apple stockholder you'll make out like a bandit. The rich get richer and the rest of us get screwed with higher usage fees, and property and sales taxes to make up the difference. Ain't this a great country?
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07/22/2013 10:52 AMPosted by ontheleft
Many corporations have most of their cash off-shores to avoid steep taxing in the U.S.


Only on paper, most companies use various loopholes in the tax code to avoid them. Sure, the numbers on the books put the US tax rate among the highest in the developed world, but the amount companies actually pay puts the US in the bottom 1/3rd of those countries.

Take Apple, for example. They're pulling off a scheme, completely legal mind you, to create debt to pay their investors billions and then use their mountains of cash to buy off the debt. Since they're buying off a debt those dollars won't be taxed. In the end they'll avoid paying taxes on tens of billions of income -- income you and I paid to their store. Which means our schools, roads, bridges, police, etc. won't get a dime from it. But if you're an Apple stockholder you'll make out like a bandit. The rich get richer and the rest of us get screwed with higher usage fees, and property and sales taxes to make up the difference. Ain't this a great country?


i'm already aware of all this. at least they are paying off their investors. many "ordinary" people are investing their money , and many of them invest in Apple. I see no problem with Apple giving returns to their investors , even though the way they are increasing their dividends is too evade taxation.
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This explains the downfall of Blizz and the lack of real innovation happening right now with D3.
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could this put blizzard out of business? end of diablo, WoW, starcraft?
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"Even if this was true" ? It IS true. Ever looked at APPLE? The GREAT majority of their funds are off-shore, and MANY other companies do the same, including Blizzard. It's not something I just made up. Did you even read the article that you provided ?



right from the article you linked.


So let's say Vivendi grabs $3 BILLION dividend from ATVI, which they have $1.6 billion on hand in the USA right now. Now they must repatriate not just enough money to pay their U.S. debt also enough money to maintain operations in the U.S. (they have offices in other nations too by the way.)

Not just that but they'll be taxed for all this repatriated money. That means more money is lost in the equation. They would only have a fraction of resources to not just maintain day to day operations but to prevent Vivendi from dipping their hands into ATVI even further.

Let's not forget how Vivendi has been trying to sell of ATVI for years now. If Blizzard lacks the liquidity to fight off their big brother right now, how much worse do you think this will get later?


They do not need to repatriate the money to pay it to a French company...
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They do not need to repatriate the money to pay it to a French company...


I was wondering when somebody would offer up the obvious. Why is it that all you other guys are thinking that the money has to come home before they can spend it?

Could it have something to do with the fact that you're..... talking through your hats?

Go back to killing monsters and flipping digital items. Economists you're not.
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07/22/2013 11:38 AMPosted by HEF
who knows . if blizzard will crash maybe they will give us offline patch loll.


An offline patch?

Then and only then would I plunk down $60 USD for Diablo III!

:)


It's already been seen in discount bins.
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