Activision Blizzard, Inc. (ATVI), Electronic Arts Inc. (EA): A Good Time for This Game Giant to Be Set Free

What about the former parent?

Vivendi, meanwhile, will get a nice cash infusion at a time when its business is in flux. The company’s top line has been at a virtual standstill over the past three years and earnings have been anything but impressive. Analysts have suggested that the company lacks focus, with assets in the media and telecom spaces. Management had committed to shedding assets some time ago, but was yet to start the streamlining effort.

The Activision Blizzard, Inc. (NASDAQ:ATVI) deal changes that. What comes next, however, is up in the air. There’s a good chance that more assets will be sold. Vivendi’s management has also suggested that the company could be split into two entities, with one focused around media and the other largely containing the company’s telecom businesses. That’s a lot of moving parts for a company that hasn’t been performing particularly well.

That said, the Activision Blizzard, Inc. (NASDAQ:ATVI) sale shows that Vivendi owns valuable assets. More aggressive investors looking for a special situation should probably take a look at the company. The Activision transaction could be the catalyst that leads to more shareholder-friendly moves and a higher share price.

Corporate actions

Corporate actions can be tricky to digest. However, it looks like Activision Blizzard, Inc. (NASDAQ:ATVI) is freeing itself at just the right time as a new game console cycle starts. That should be a huge benefit to shareholders. New versions of Xbox and PlayStation, though, will also help the recovering business of EA. Vivendi, meanwhile, is still an odd amalgam of a company. In that, however, could be hidden value if management keeps making shareholder-friendly moves.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard. The Motley Fool owns shares of Activision Blizzard. 

The article A Good Time for This Game Giant to Be Set Free originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.