| Filed by the Registrant ☒ | | | Filed by a Party other than the Registrant ☐ | |
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| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | |
| | |
Fiscal Year Ending December 31,
|
| |||||||||||||||||||||
Long-Range Plan
|
| |
2021E
|
| |
2022E
|
| |
2023E
|
| |
2024E
|
| ||||||||||||
Revenue(1)
|
| | | $ | 8,856 | | | | | $ | 9,174 | | | | | $ | 11,725 | | | | | $ | 12,405 | | |
Operating Income(2)
|
| | | $ | 3,718 | | | | | $ | 3,886 | | | | | $ | 4,849 | | | | | $ | 5,597 | | |
Management Forecasts
|
| |
Fiscal Year Ending December 31,
|
| |||||||||||||||||||||||||||||||||
|
2021E
|
| |
2022E
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| ||||||||||||||||||||
Revenue(1)
|
| | | $ | 8,354 | | | | | $ | 8,625 | | | | | $ | 10,605 | | | | | $ | 11,125 | | | | | $ | 12,237 | | | | | $ | 12,604 | | |
EBIT (Pre-SBC)(2)
|
| | | $ | 3,507 | | | | | $ | 3,450 | | | | | $ | 4,300 | | | | | $ | 4,870 | | | | | $ | 5,166 | | | | | $ | 5,446 | | |
Adj. EBITDA(3)
|
| | | $ | 3,615 | | | | | $ | 3,552 | | | | | $ | 4,403 | | | | | $ | 4,973 | | | | | $ | 5,266 | | | | | $ | 5,546 | | |
(-) SBC
|
| | | $ | (554) | | | | | $ | (601) | | | | | $ | (526) | | | | | $ | (560) | | | | | $ | (580) | | | | | $ | (600) | | |
(-) Depreciation & Amortization
|
| | | $ | (108) | | | | | $ | (103) | | | | | $ | (103) | | | | | $ | (103) | | | | | $ | (100) | | | | | $ | (100) | | |
Taxable EBIT
|
| | | $ | 2,954 | | | | | $ | 2,849 | | | | | $ | 3,774 | | | | | $ | 4,311 | | | | | $ | 4,586 | | | | | $ | 4,846 | | |
(-) Cash Taxes
|
| | | $ | (443) | | | | | $ | (528) | | | | | $ | (698) | | | | | $ | (793) | | | | | $ | (826) | | | | | $ | (872) | | |
Net Operating Profit After Taxes
|
| | | $ | 2,511 | | | | | $ | 2,321 | | | | | $ | 3,076 | | | | | $ | 3,518 | | | | | $ | 3,761 | | | | | $ | 3,974 | | |
(+) Depreciation & Amortization
|
| | | $ | 108 | | | | | $ | 103 | | | | | $ | 103 | | | | | $ | 103 | | | | | $ | 100 | | | | | $ | 100 | | |
(-) Change in Working Capital
|
| | | | — | | | | | $ | (275) | | | | | $ | (50) | | | | | $ | (50) | | | | | $ | (61) | | | | | $ | (63) | | |
(-) Capital Expenditures
|
| | | $ | (105) | | | | | $ | (100) | | | | | $ | (100) | | | | | $ | (100) | | | | | $ | (100) | | | | | $ | (100) | | |
(-) Capitalized Software Development
|
| | | $ | (426) | | | | | $ | (541) | | | | | $ | (434) | | | | | $ | (439) | | | | | $ | (489) | | | | | $ | (504) | | |
(+) Amortization of Software Development
|
| | | $ | 215 | | | | | $ | 286 | | | | | $ | 818 | | | | | $ | 389 | | | | | $ | 587 | | | | | $ | 504 | | |
(-) Restructuring
|
| | | $ | (67) | | | | | $ | (25) | | | | | $ | (25) | | | | | $ | (25) | | | | | $ | (25) | | | | | $ | (25) | | |
Unlevered Free Cash Flow(4)
|
| | | $ | 2,235 | | | | | $ | 1,768 | | | | | $ | 3,387 | | | | | $ | 3,396 | | | | | $ | 3,773 | | | | | $ | 3,886 | | |
|
Implied Equity Value Per Share
Reference Range Based On: |
| |
Merger Consideration
|
| |||
|
CY2022E EBITDA
|
| |
CY2023E EBITDA
|
| | | |
|
$69.08 – $89.05
|
| |
$77.93 – $91.67
|
| |
$95.00
|
|
Announcement Date
|
| |
Acquiror
|
| |
Target
|
|
January 2022 | | | Take-Two Interactive Software, Inc. | | | Zynga Inc. | |
February 2021 | | | Electronic Arts Inc. | | | Glu Mobile, Inc. | |
December 2020 | | | Electronic Arts Inc. | | | Codemasters Group Holdings plc | |
September 2020 | | | Microsoft Corporation | | | ZeniMax Media, Inc. | |
August 2020 | | | Tencent Music Entertainment Group | | | Leyou Technologies Holdings Ltd. | |
November 2017 | | | Aristocrat Leisure Limited | | | Big Fish Games, Inc. | |
April 2017 | | | DoubleU Games Co., Ltd. | | | DoubleDown Interactive Co., Inc. | |
July 2016 | | |
Shanghai Giant Network Technology Co., Ltd.
|
| | Playtika Holdings, LLC | |
June 2016 | | | Tencent Holdings Ltd. | | | Supercell Oy | |
November 2015 | | | Activision Blizzard Inc. | | | King Digital Entertainment Public Limited Company | |
October 2013 | | | SoftBank Group Corp. | | | Supercell Oy | |
|
Implied Equity Value Per Share
Reference Range Based On: |
| |
Merger Consideration
|
|
|
LTM EBITDA
|
| | | |
|
$72.40 – $99.49
|
| |
$95.00
|
|
|
Implied Equity Value Per Share
Reference Range: |
| |
Merger Consideration
|
|
|
$84.73 – $123.87
|
| |
$95.00
|
|
Officer(1)
|
| |
Cash
($)(2) |
| |
Equity
($)(3) |
| |
Perquisites/
Benefits ($)(4) |
| |
Total
($) |
| ||||||||||||
Robert A. Kotick
|
| | | $ | 14,369,130 | | | | | $ | 0 | | | | | $ | 219,762 | | | | | $ | 14,588,892 | | |
Armin Zerza
|
| | | $ | 4,220,274 | | | | | $ | 20,780,588 | | | | | $ | 49,832 | | | | | $ | 25,050,694 | | |
Daniel Alegre
|
| | | $ | 5,647,808 | | | | | $ | 17,471,392 | | | | | $ | 49,832 | | | | | $ | 23,169,032 | | |
Brian Bulatao
|
| | | $ | 4,183,562 | | | | | $ | 5,789,695 | | | | | $ | 49,832 | | | | | $ | 10,023,089 | | |
Grant Dixton
|
| | | $ | 2,728,253 | | | | | $ | 10,506,335 | | | | | $ | 41,238 | | | | | $ | 13,275,827 | | |
| | |
Shares of Activision Blizzard Common Stock Beneficially Owned
|
| |||||||||||||||||||||
Name
|
| |
Shares
Owned (#) |
| |
Right to
Acquire(1) (#) |
| |
Total
Shares Owned plus Right to Acquire (#) |
| |
Percent of
Outstanding Shares(2) (%) |
| ||||||||||||
Daniel Alegre
|
| | | | 14,563(3) | | | | | | 171,005(4) | | | | | | 185,568 | | | | | | * | | |
Reveta Bowers
|
| | |
|
15,284(5)
|
| | | |
|
671(6)
|
| | | |
|
15,955
|
| | | |
|
*
|
| |
Brian Bulatao
|
| | | | — | | | | | | 15,747(7) | | | | | | 15,747 | | | | | | * | | |
Robert Corti
|
| | |
|
121,016(8)
|
| | | |
|
671(6)
|
| | | |
|
121,687
|
| | | |
|
*
|
| |
Grant Dixton
|
| | | | — | | | | | | — | | | | | | — | | | | | | * | | |
Dennis Durkin
|
| | | | 157,559 | | | | | | — | | | | | | 157,559 | | | | | | * | | |
Hendrik Hartong III
|
| | | | 38,393(9) | | | | | | 671(6) | | | | | | 39,064 | | | | | | * | | |
Brian Kelly
|
| | | | 1,155,420(10) | | | | | | 81,347(11) | | | | | | 1,236,767 | | | | | | * | | |
Robert Kotick
|
| | | | 4,296,550(12) | | | | | | 2,201,878(13) | | | | | | 6,498,428 | | | | | | * | | |
Barry Meyer
|
| | |
|
51,052(14)
|
| | | |
|
671(15)
|
| | | |
|
51,723
|
| | | |
|
*
|
| |
Robert Morgado
|
| | |
|
119,419(16)
|
| | | |
|
44,671(17)
|
| | | |
|
164,090
|
| | | |
|
*
|
| |
Claudine Naughton
|
| | | | — | | | | | | — | | | | | | — | | | | | | * | | |
Peter Nolan
|
| | |
|
220,778(18)
|
| | | |
|
671(6)
|
| | | |
|
221,449
|
| | | |
|
*
|
| |
Dawn Ostroff
|
| | | | 4,767 | | | | | | 671(6) | | | | | | 5,438 | | | | | | * | | |
Chris Walther
|
| | | | 39,684(19) | | | | | | — | | | | | | 39,684 | | | | | | * | | |
Casey Wasserman
|
| | |
|
23,059(20)
|
| | | |
|
671(6)
|
| | | |
|
23,730
|
| | | |
|
*
|
| |
Armin Zerza
|
| | | | — | | | | | | 76,369(21) | | | | | | 76,369 | | | | | | * | | |
All current directors and executive officers as a group
(14 persons) |
| | | | 6,060,301(22) | | | | | | 2,595,714(23) | | | | | | 8,656,014 | | | | | | 1.11% | | |
Name and Address of Beneficial Owner
|
| |
Shares of
Activision Blizzard Beneficially Owned |
| |
Percent of
Outstanding Shares |
| ||||||
The Vanguard Group
100 Vanguard Boulevard Malvern, PA 19355 |
| | | | 64,883,729(1) | | | | | | 8.33% | | |
BlackRock, Inc.
55 East 52nd Street New York, NY 10055 |
| | | | 61,381,263(2) | | | | | | 7.88% | | |
Capital International Investors
333 South Hope Street, 55th Fl. Los Angeles, CA 90071 |
| | | | 41,106,446(3) | | | | | | 5.27% | | |
| | |
Page
|
| |||
Article I DEFINITIONS & INTERPRETATIONS | | | |||||
| | | | A-1 | | | |
| | | | A-12 | | | |
| | | | A-14 | | | |
| | | | A-15 | | | |
Article II THE MERGER | | | |||||
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-17 | | | |
| | | | A-18 | | | |
| | | | A-20 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-23 | | | |
Article III REPRESENTATIONS AND WARRANTIES OF THE COMPANY | | | |||||
| | | | A-23 | | | |
| | | | A-23 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-25 | | | |
| | | | A-26 | | | |
| | | | A-27 | | | |
| | | | A-27 | | | |
| | | | A-28 | | | |
| | | | A-28 | | | |
| | | | A-28 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-30 | | | |
| | | | A-31 | | | |
| | | | A-33 | | | |
| | | | A-35 | | |
| | |
Page
|
| |||
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-37 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
Article IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB | | | |||||
| | | | A-39 | | | |
| | | | A-40 | | | |
| | | | A-40 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
Article V INTERIM OPERATIONS OF THE COMPANY | | | |||||
| | | | A-42 | | | |
| | | | A-42 | | | |
| | | | A-45 | | | |
| | | | A-49 | | | |
Article VI ADDITIONAL COVENANTS | | | |||||
| | | | A-49 | | | |
| | | | A-50 | | | |
| | | | A-51 | | | |
| | | | A-52 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-55 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-58 | | | |
| | | | A-58 | | | |
| | | | A-58 | | | |
| | | | A-58 | | | |
| | | | A-59 | | | |
| | | | A-60 | | | |
| | | | A-60 | | |
| | |
Page
|
| |||
Article VII CONDITIONS TO THE MERGER | | | |||||
| | | | A-61 | | | |
| | | | A-61 | | | |
| | | | A-62 | | | |
Article VIII TERMINATION, AMENDMENT AND WAIVER | | | |||||
| | | | A-62 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-66 | | | |
| | | | A-66 | | | |
Article IX GENERAL PROVISIONS | | | |||||
| | | | A-66 | | | |
| | | | A-66 | | | |
| | | | A-67 | | | |
| | | | A-67 | | | |
| | | | A-67 | | | |
| | | | A-67 | | | |
| | | | A-68 | | | |
| | | | A-68 | | | |
| | | | A-68 | | | |
| | | | A-68 | | | |
| | | | A-69 | | | |
| | | | A-69 | | | |
| | | | A-69 | | |
Term
|
| |
Section Reference
|
|
Agreement | | | Preamble | |
Alternative Acquisition Agreement | | | 5.3(a) | |
Assumed Company Option | | | 2.8(c)(i) | |
Assumed Company Stock-Based Award | | | 2.8(c)(ii) | |
Base Indenture | | | 1.1(ppp) | |
Book-Entry Shares | | | 2.9(b) | |
Burdensome Condition | | | 6.2(b) | |
Bylaws | | | 3.1 | |
Cancelled Owned Company Shares | | | 2.7(a)(ii) | |
Capitalization Date | | | 3.7(a) | |
Certificate of Merger | | | 2.2 | |
Certificates | | | 2.9(b) | |
Charter | | | 3.1 | |
Closing | | | 2.3 | |
Closing Date | | | 2.3 | |
Collective Bargaining Agreement | | | 3.19(a) | |
Company | | | Preamble | |
Company Board Recommendation | | | 3.3(a) | |
Company Board Recommendation Change | | | 5.3(c)(i) | |
Company Disclosure Letter | | | 1.4(a) | |
Company Employee | | | 3.18(i) | |
Company Plans | | | 6.9(b) | |
Company Recent SEC Reports | | | Article III | |
Company SEC Reports | | | 3.9 | |
Company Securities | | | 3.7(d) | |
Company Stockholder Meeting | | | 6.4(a) | |
Company Termination Fee | | | 8.3(b)(i) | |
Comparable Plans | | | 6.9(b) | |
Confidentiality Agreement | | | 9.4 | |
Consent | | | 3.6 | |
D&O Insurance | | | 6.8(c) | |
DGCL | | | Recitals | |
Dissenting Company Shares | | | 2.7(b)(i) | |
Term
|
| |
Section Reference
|
|
Effect | | | 1.1(o) | |
Effective Time | | | 2.2 | |
Electronic Delivery | | | 9.12 | |
Employee Plans | | | 3.18(a) | |
ERISA Affiliate | | | 3.18(a) | |
Exchange Fund | | | 2.9(a) | |
FinCEN | | | 3.21(d) | |
First Supplemental Indenture | | | 1.1(ooo) | |
Indemnified Persons | | | 6.8(a) | |
Indenture | | | 1.1(ppp) | |
Initial Termination Date | | | 8.1(c) | |
Injunction | | | 8.1(b) | |
International Employee Plan | | | 3.18(a) | |
Lease | | | 3.14(b) | |
Leased Real Property | | | 3.14(b) | |
Maximum Annual Premium | | | 6.8(c) | |
Merger | | | Recitals | |
Merger Sub | | | Preamble | |
New Plans | | | 6.9(c) | |
Notice Period | | | 5.3(d)(ii)(3) | |
OFAC | | | 3.21(c) | |
Old Plans | | | 6.9(c) | |
Owned Real Property | | | 3.14(a) | |
Parent | | | Preamble | |
Parent Disclosure Letter | | | 1.4(b) | |
Parent Qualified Plan | | | 6.9(d) | |
Parent Recent SEC Reports | | | Article IV | |
Parent Termination Fee | | | 8.3(c)(i) | |
Party | | | Preamble | |
Paying Agent | | | 2.9(a) | |
Payoff Letter | | | 6.16(d) | |
Permits | | | 3.20 | |
Proxy Statement | | | 6.3(a) | |
Representatives | | | 5.3(a) | |
Repurchase Transaction | | | 6.16(c) | |
Repurchase Transaction Notice | | | 6.16(c) | |
Requisite Stockholder Approval | | | 3.4 | |
Revolving Credit Facility Termination | | | 6.16(d) | |
Sanctioned Countries | | | 3.21(c) | |
Sanctioned Person | | | 3.21(c) | |
Sanctions | | | 3.21(c) | |
Second Supplemental Indenture | | | 1.1(ppp) | |
Sublease | | | 3.14(c) | |
Term
|
| |
Section Reference
|
|
Surrendered Company Stock-Based Award | | | 2.8(a) | |
Surviving Corporation | | | 2.1 | |
Tax Returns | | | 3.17(a)(i) | |
Termination Date | | | 8.1(c) | |