Activision Withdraws Registration For Common Stock Offering
Activision, Inc. has discontinued its previously announced public offering of common stock due to current market conditions. The company has filed with the Securities and Exchange Commission an application for the withdrawal of its registration statement covering the 6 million shares of its common stock that were to be issued in the proposed public offering. The company has also discontinued any further marketing efforts in connection with the offering. However, the companys Board of Directors has approved a three-for-two split of its outstanding common shares. The split is payable on November 20, 2001, to shareholders of record as of November 6, 2001. The stock split will be accomplished through a 50% stock dividend, providing shareholders with one additional share of common stock for every two shares they hold. In lieu of issuing fractional shares, shareholders will receive a cash payment based on the average of the high and low sales prices of the common stock on the record date. Once the split is completed, Activision will have approximately 51.0 million common shares outstanding. William Chardavoyne, executive vice president and chief financial officer, said, We are very excited about the direction of Activision and our recent accomplishments. Activision recently reported record results for the first six months of our fiscal year, and our outlook on the product front has never been stronger. Two new game consoles [Microsofts Xbox and Nintendos Game Cube] are set to enter the market in November, and we are more confident than ever in our strategy and our ability to execute and build shareholder value against our operating plan. This stock split will increase the number of shares outstanding, thereby enhancing our liquidity.