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ACTIVISION BLIZZARD: Activision and Vivendi Games to merge
Michael French Dec 2 2007, 5:31pm
Comments (5)
Shock deal worth $18.9bn creates world's biggest publisher, called Activision Blizzard
In the most surprising news of the year, Electronic Arts has been dethroned as the games industry's biggest publisher, ousted by a new company formed following the merger of Activision and Vivendi Games.
The two companies said that the massive power-shifting deal, worth a total of $18.9bn, will create 'the world's largest pure-play online and console game publisher' - a company called Activision Blizzard, which will boast the highest operating margins of any major third-party video game publisher.
Creating the goliath company brings together a raft of Activision's properties, including Guitar Hero, Call of Duty, the Tony Hawk series and a range of licences that includes Spider-Man, X-Men, James Bond and Shrek, with Vivendi's slate of games which includes Blizzard's world-popular World of Warcraft and its Diablo and StarCraft stablemates and the likes of Crash Bandicoot and Spyro.
Key to the move is the access to Blizzard and its MMO, which instantly puts Activision at the centre of the lucrative online gaming business.
Activision Blizzard said it expects to make around 70 per cent of its revenues from owned IP-based franchises, meaning it has "the most diversified and broadest portfolio of interactive entertainment assets in its industry".
Jean-Bernard Levy, chairman of the management board and CEO of Vivendi stated: "This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector.
By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry. We are excited about the opportunities for Activision Blizzard as a broader entertainment software platform."
Robert Kotick, Activision's chairman and CEO added: "This is an outstanding transaction for Activision and our stockholders, as well as a pivotal event in the continuing transformation of the interactive entertainment industry. By combining leaders in mass-market entertainment and subscription-based online games, Activision Blizzard will be the only publisher with leading market positions across all categories of the rapidly growing interactive entertainment software industry and reach the broadest possible audiences."
Activision Blizzard will be directed by a board of key execs from the two companies; current Vivendi Games and Activision bosses Bruce Hack and Robert Kotick are to be appointed as two of eleven directors of the new super-publisher while Rene Penisson, currently a on the board of Vivendi and chairman of Vivendi Games, will serve as chairman of Activision Blizzard.
Comments
“Phh”
Posted by: Dale - Dec 2, 6:21pm
Phh. Would've made much more sense for them to have been called AV Games.
“Re: Phh”
Posted by: JH Games Exchange - Dec 2, 7:44pm
Please don't let Activision kill the Vivendi approved stockist scheme. Great margins and great stock with the SOE facility. An Indie lifeline that genuinely works.
“Next move please!”
Posted by: DJWD - Dec 2, 7:48pm
So industry leaders, your next move please! I predict: WB buying SCI and EA swallowing Ubi. You don't think Riccitiello wants to work at the world's second 3rd party publisher, do you? ;-)
“Re: Next move please!”
Posted: Dec 2, 9:03pm
Bleedin' 'eck - where did that come from? I reckon the next big move will see D3P buy South Peak - imagine that!
“Re: Next move please!”
Posted by: Matt Taylor - Dec 3, 1:14pm
My prediction is a merger between Bungie and Rare. I can see it now, the master chief defending earth from Grunty whilst Cortana places HUD navigation markers to the nearest Jiggy.