Investors seem to like Activision Blizzard Inc.’s plan for buying back its freedom from Vivendi SA.

The Santa Monica video game publisher announced last week that it will sell $2.5 billion in secured and unsecured notes to help finance its purchase of more than 400 million company shares from Vivendi by the end of the month.

The news has helped Activision’s stock climb 4 percent to $17.10 for the week ended Sept. 4. It was the most active stock on the LABJ Stock Index with a volume of more than 6.9 million shares for the week. (See page 26.)

Michael Pachter, a video game analyst for Wedbush Securities in downtown Los Angeles, said Activision’s track record of generating cash eases any concern about the company taking on debt.

“Debt makes a company more risky,” he said. “But investors would have bid the stock down if they weren’t comfortable with the debt level.”

As a result of the fairly complicated transaction, the number of Activision shares outstanding will be reduced. It’s likely that investors also responded favorably to that because it will help the company boost its earnings per share.

Activision announced in July that it plans to purchase 429 million shares for $5.8 billion, or $13.60 a share, from Vivendi. It will finance the deal with more than $1 billion in cash and $4.75 billion in debt.

The company did not respond to a request for comment.

A group of investors, led by Activision Chief Executive Robert Kotick, also plans to purchase 172 million shares from Vivendi for more than $2.3 billion.

When the transaction is completed, Vivendi will retain a 12 percent stake in the company, down from about 60 percent, while Kotick’s investment group, Asac II, will own 25 percent.

Vivendi merged online gaming powerhouse Blizzard Entertainment with Activision in 2008 to create Activision Blizzard. The French conglomerate became the majority owner of the combined company.

But struggling Vivendi has been reluctant to allow Kotick to take risks at cash cow Activision, said Pachter.

He added that the sale will give Kotick and his team renewed control over Activision’s long-term strategy.

“There are a number of things he wanted to do,” Pachter said. “Vivendi was keeping them from doing a lot of stuff because Vivendi didn’t want the cash to go away.”