Activision said after our Fri. deadline it completed underwritten...
Activision said after our Fri. deadline it completed underwritten public offering of 7.5 million shares of common stock that it had announced plan for early last week (CED June 6 p5). Company took hit after company announced plan for…
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offering. Activision said all shares were offered for sale by it and Goldman, Sachs acted as sole underwriter. As planned, it said, $247.8 million was raised through offering. Proceeds are to be used for general corporate purposes, including for additions to working capital and financing of capital expenditures, joint ventures and/or strategic acquisitions. Commenting on closing of offering, Activision CEO Robert Kotick said: “We remain confident that the positive outlook for our business combined with our management depth, financial stability, strong infrastructure and product momentum should enable us to continue building our operating capability while enhancing shareholder value. Taking into account the increased number of shares outstanding after the offering, and based on the overall strength of the videogame industry, strong market performance of our titles globally and anticipated use of proceeds from the offering, the company reiterates its fiscal year 2003 guidance of earnings per share of $1.10 on net revenues of $890 million.” Shares in Activision dropped off last week after offering was first announced. Activision saw its shares drop Wed. 8.5% to $31.67 in midday trading on Nasdaq. Shares that morning later fell further, to $31.60, after dipping as low as $31.22. Closing price day earlier had been $34.61. Shares in company closed at $30.03 on Fri., opened at $30.03 on Mon. and increased to $31.31 by our deadline. In other Activision news, company boasted Mon. its first-person action game Soldier of Fortune II: Double Helix was “topping worldwide sell-through charts,” while Star Wars Jedi Knight II: Jedi Outcast was continuing to experience strong sales. Both titles were developed for company by Raven Software.