Activision Gains Autonomy From Vivendi

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Oct. 14 (Bloomberg) –- Bloomberg’s Matthew Campbell reports on Vivendi’s turnaround strategy after Activision’s $8.2B Buyout. He speaks to Francine Lacqua on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Finally, we heard that they are fully divesting themselves of it.

This is a question that has hung in the air.

Vivendi is a storied french conglomerate and was coexisting with activision, cofounded by an independent guy and relations were not perfect.

They have gone their separate ways and this is part of a broader turnaround effort for vivendi.

This means that activision can go off and be independent.

For vivendi, hopefully a new start and a new direction for a well-known wrench company that has run into problems in the last few years.

Talk to me about activision.

They are free to be activision?

Let's act -- acquisitions are the goal.

They have a very significant chinese company and that gives you a hint of where their thinking that their future lies.

The other question is social gaming and games played on facebook and mobile.

Their focus has been on games like call of duty and games you are playing on a console and television.

That may not be the future of the gaming world.

They may want to expand into this area.

Talk to me about vivendi and this company splitting up.

This may happen by 2014. there was news come up going to french newspapers, that vivendi had appointed a number of banks to run in ipo.

It would be large.

When it is a done deal, vivendi will have split themselves into a telecom arm and a media and content arm.

That is something that activists have been calling for years.

They say there is no reason for a company to offer content and telecommunications.

There is no synergy between the two.

Vivendi fought this argument.

They said that this was the way it should be.

What are the prospects for an independent company?

They are not great.

Let us see, the challenge was a result of the cheapest mobile plants in europe.

That is pushing down prices in the french market and has hit the main competitors.

They will have to come to grips with that challenge and the prospects are not clear.

For investors, it will be a purer play.

Telecom companies will invest in this.

I have been coupling -- covering vivendi.

They never get it right.

They split up.

Had we know that this time is for real what are investors are saying about valuation?

The shares have come up.

We're at a place that the market seems to like.

Remember the master of the universe he was on an acquisition spree and expanded and is now shrinking.

We do not know when they will get this right the chairman was committed to turning vivendi around he owns for the company himself.

This text has been automatically generated. It may not be 100% accurate.

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