Activision Blizzard Inc. (NASDAQ: ATVI) is known as one of the biggest and most well-known game producers in the world, and it reported its fourth-quarter results Thursday after the markets closed. The company had $0.94 in earnings per share (EPS) on $2.21 billion in revenue, against Thomson Reuters consensus estimates of $0.88 EPS on $2.24 billion in revenue. The fourth quarter from the previous year had $0.79 in EPS on $2.27 billion in revenue.

The company gave guidance for the first quarter as $0.05 in EPS and $640 million in revenue. There are consensus estimates of $0.18 in EPS and $777.72 million in revenue for the first quarter. Activision Blizzard has released extra shareholder-friendly efforts in order to stave off negative reactions.

The company’s board of directors authorized a new two-year stock repurchase program for $750 million of its outstanding common stock. Additionally, the company announced that the board approved a repayment of $250 million of its outstanding “Term Loan B.” This is expected to occur during the first quarter of 2015. Finally, the board declared a cash dividend of $0.23 per common share, which represents a 15% increase from 2014. This would make a yield of 4.2% from Thursday’s close.

According to internal estimates, Activision Publishing’s Call of Duty: Advanced Warfare was the top-selling console game globally for the calendar year. Call of Duty franchise revenues now exceed $11 billion in retail sales worldwide since it first launched in 2003.

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Skylanders Trap Team was the top-selling kids console game globally for the calendar year. For the third consecutive year, it was also the number one kids video game franchise of the year in the United States and globally.

Destiny was the most successful launch of a new video game franchise in history — estimated for units sold. Destiny was also the top-selling new video game intellectual property and the third best-selling new release in North America and Europe, combined, for the calendar year.

Please note that the reference immediately hereafter to the “registration statement” has been updated.

Another overhang on Activision Blizzard was a shelf registration statement filing. This SEC filing showed that Vivendi has filed to sell up to 41,499,688 shares of common stock. The filing showed it to be worth some $855 million, but it also showed that Vivendi would be able to sell from time to time via public or private transactions. Such shelf registrations do not require sellers to sell, but the filing did indicate that if the shares were sold then Vivendi’s ownership would be zero. We saw a similar share sale back in May of last year.

Bobby Kotick, CEO of Activision Blizzard, said:

2014 was another successful year as we achieved record results and introduced new franchises with outstanding gameplay, expanded on exciting new business models and continued investing in some of the world’s most important entertainment franchises. We delivered record earnings per share which increased more than 50% from the previous year, double-digit revenue growth, and record high-margin digital revenues that represent an all-time high of 46% of total revenues

He continued:

We have a growing portfolio of the very best franchises and great confidence in our future. Our Board has once again increased our dividend, authorized a $750 million share repurchase program and the repayment of another $250 million of our debt, and we have returned nearly $10 billion to our shareholders in dividends and repurchases since 2008.

Shares of Activision Blizzard closed Thursday up 1.4% at $21.82. In after-hours trading following the release of the earnings report, shares were down over 7% at $20.19. The stock has a consensus analyst price target of $26.05 and a 52-week trading range of $16.95 to $24.18.

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Here are some verbatim snippets from the SEC FILING, in the company’s own words, that was made on Thursday:

• This prospectus relates to the resale from time to time of up to 41,499,688 shares of common stock (which we refer to as the “shares”) of Activision Blizzard, Inc. by the selling stockholder identified in this prospectus. We will not receive any proceeds from the sale of the shares. You should read this prospectus and any applicable prospectus supplement before you invest.
• The selling stockholder identified in this prospectus will pay any underwriting discounts and commissions and transfer taxes incurred by it in disposing of the shares, as well as the fees and expenses of its counsel. We will pay all other costs, fees and expenses incurred in effecting the registration of the shares covered by this prospectus.
• The selling stockholder identified in this prospectus, or its pledgees, donees, assignees, transferees or other successors-in-interest, may offer the shares from time to time through public or private transactions at prevailing market prices, at prices related to prevailing market prices or at privately negotiated prices.
• Our common stock is traded on the NASDAQ Global Select Market under the symbol “ATVI.” On February 2, 2015, the closing sale price of our common stock on the NASDAQ Global Select Market was $21.125 per share. You are urged to obtain current market quotations for our common stock.
• We are registering an aggregate of 41,499,688 shares of our common stock held by Vivendi S.A.
• On July 9, 2008, a business combination (the “Business Combination”) by and among Activision, Inc., Sego Merger Corporation, a wholly-owned subsidiary of Activision, Inc., Vivendi S.A. (“Vivendi”), VGAC LLC, a wholly-owned subsidiary of Vivendi, and Vivendi Games, Inc. (“Vivendi Games”), a wholly-owned subsidiary of VGAC LLC, was consummated. As a result of the consummation of the Business Combination, Activision, Inc. was renamed Activision Blizzard, Inc. and Vivendi became a majority shareholder of Activision Blizzard. As part of the Business Combination, we entered into various transactions and agreements, including cash management services agreements, a tax sharing agreement and an investor agreement, with Vivendi and its subsidiaries.
• On October 11, 2013, we repurchased approximately 429 million shares of our common stock, pursuant to a stock purchase agreement (the “Stock Purchase Agreement”) we entered into on July 25, 2013, with Vivendi and ASAC II LP (“ASAC”), an exempted limited partnership established under the laws of the Cayman Islands, acting by its general partner, ASAC II LLC. Pursuant to the terms of the Stock Purchase Agreement, we acquired all of the capital stock of Amber Holding Subsidiary Co., a Delaware corporation and wholly-owned subsidiary of Vivendi (“New VH”), which was the direct owner of approximately 429 million shares of our common stock, for a cash payment of $5.83 billion, or $13.60 per share, before taking into account the benefit to us of certain tax attributes of New VH assumed in the transaction (collectively, the “Purchase Transaction”). The repurchased shares were recorded in “Treasury Stock” in our consolidated balance sheet. Immediately following the completion of the Purchase Transaction, ASAC purchased from Vivendi approximately 172 million shares of Activision Blizzard common stock, pursuant to the Stock Purchase Agreement, for a cash payment of $2.34 billion, or $13.60 per share (the “Private Sale”).
• The Stock Purchase Agreement contained covenants, including covenants relating to certain tax matters and proceedings and providing for restrictions on Vivendi’s and ASAC’s ability to transfer our common stock. The Stock Purchase Agreement further provided that Vivendi and its “controlled affiliates”, as defined in the Stock Purchase Agreement, could not transfer the “Remaining Shares” (as defined in the Stock Purchase Agreement) for fifteen months following the closing of the Purchase Transaction and Private Sale, with the exception of a three-month window after the first six months in which Vivendi was able to sell up to the lesser of (a) 50% of the Remaining Shares and (b) nine percent of the issued and outstanding shares of our common stock as of the date of such sale. On May 21, 2014, while in the above referenced three-month window, Vivendi sold 50% of the Remaining Shares pursuant to the underwriting agreement referred to below. The fifteen month lockup period has now expired, and, in accordance with the terms of the Stock Purchase Agreement, we have filed a shelf registration statement of which this prospectus forms a part for resales of all of the Remaining Shares that continue to be owned by Vivendi.
• On May 21, 2014, we entered into an underwriting agreement with Vivendi and certain underwriters, pursuant to which Vivendi sold an aggregate of 41,499,689 shares of our common stock. We did not receive any of the proceeds from the offering of shares by Vivendi.

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