Activision Blizzard to acquire King Digital Entertainment

Activision Blizzard, Inc, of California, and King Digital Entertainment plc, headquartered in Ireland, have announced the signing of a definitive agreement under which ABS Partners, a wholly owned subsidiary of Activision Blizzard, will acquire all of the outstanding shares of King for $18.00 in cash per share, for a total equity value of $5.9 billion. The $18.00 per share purchase price implies a 20% premium over King’s 30 October 2015 closing price, a 26% premium over King’s 30 October 2015 enterprise value (which excludes net cash), a 23% premium over King’s one month volume weighted average price per share and a 27% premium over King’s three month volume weighted average price per share. The boards of directors of both Activision Blizzard and King unanimously approved the acquisition, which is being implemented by means of a scheme of arrangement under Irish law. The acquisition is subject to approval by King’s shareholders and the Irish High Court, clearances by the relevant antitrust authorities and other customary closing conditions, and it is currently expected that the acquisition will be completed by Spring 2016.