Activision and Vivendi to merge News
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Activision and Vivendi Games are to merge, becoming the world's largest independent videogame publisher, in a deal valued at USD 18.9 billion, GamesIndustry.biz reports.
The new company, Activision Blizzard, now boasts a portfolio bursting with some of the top-selling videogame franchises including Blizzard's World of Warcraft, Starcraft and Diablo, Vivendi's Crash Bandicoot and Spyro and Activision's Guitar Hero, Call of Duty and the Tony Hawk series.
Activision shareholders are to receive USD 27.50 a share, a 24 per cent premium over Friday's close of USD 22.15. Vivendi Games will contribute USD 1.7 billion in cash to the company and take a 52 per cent stake.
"This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector," commented Jean Bernard Levy, CEO of Vivendi.
"The combined strength of the existing management teams at both companies will set the stage for further profitable growth of Activision Blizzard.
"We look forward to being an active and supportive majority stockholder in a company that is poised to lead the worldwide interactive entertainment industry in the years ahead," he said.
Shares of Vivendi Games will be converted into 295.3 million new shares of Activision, which values Vivendi Games at USD 8.1 billion. Vivendi will also purchase 62.9 million newly issued shares in Activision for USD 1.7 billion in cash.
"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," commented Robert Kotick, CEO of Activision.
"By joining forces with Vivendi Games, we will become the immediate leader in the highly profitable online games business and gain a large footprint in the rapidly growing Asian markets, including China and Korea, while maintaining our leading operating performance across North America and Europe," he added.
Kotick will remain as chief executive of Activision Blizzard, while Vivendi Games boss Bruce Hack will become vice chairman and chief corporate officer. He will also lead the merger, expected to be compete in the first half of 2008.
Activision also said that it will now have access to Universal Music Group, the world's largest music company, "which will benefit Guitar Hero and further extend our sizeable leadership position in music-based games."
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Comments: 1-32 of 32 in total
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ProtoformX
02/12/07 @ 18:28
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I want a "Guitar Hero" profession in World of Warcraft.
This is insane. OK, it makes great business sense but the numbers being thrown around here are just astronomical. This whole profit and gowth thing is something I just can't get my head round. Why did Activision have to buy Vivendi? I'm pretty sure Activision were already making enough money to get by on. |
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DanWhitehead
02/12/07 @ 19:44
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They need to sort out a better name... Activision Blizzard? why not Activendi or somethin short and catchy?
Vivivision. |
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>Why did Activision have to buy Vivendi
Read the story, its not a buy-out its a merge. Activision also had a lower share price so contributed less to the pot.. Vivendi are the biggest share holder in the group and are therefor the controlling vote. So you could say they were "bought" (but they werent)
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most recently on 02/12/07 @ 19:57
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kangarootoo
02/12/07 @ 20:23
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@ProtoformX
"I'm pretty sure Activision were already making enough money to get by on." Thats the thing right there though, getting by is not enough in business. If your business isn't expanding, it is failing. No it makes no sense, but that is capitalism for you. The same capitalism that asks a farmer growing enough food for his family each year "but how will you PROGRESS without our investment?" @Wyrm Not quite sure I agree as far as the name goes. In truth a whole shed load of gamers out there haven't heard of either company. Activision has been a name in gaming for over 20 years, Blizzard are the people that make WoW. I honestly couldn't make the call on which is currently the most well known, but I'm not sure you can say the name Activision means nothing. In the mainstream, Activision is probably more well known, but what that means in game sales terms I'm not sure. |
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projectmayhem
02/12/07 @ 22:18
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At $19billion are these guys seriously expecting us to think they're independent on any level? At this stage they've more money then Sony, Microsoft and Nintendo's software divisions at an investment level (note: this fact is completely false unless someone bothers to prove it otherwise)... except with less innovation. And no, Guitar Hero isn't innovation when it's in the third iteration...
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crazyhorse174
02/12/07 @ 22:59
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Read the story, its not a buy-out its a merge.
Theres no such thing as a merger - thats what company's say to make people feel comfortable. One company always ends up better off than the other.
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most recently on 02/12/07 @ 22:59
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"Vivendi are fucking huge man! If it wasnt for everything else, they'd have WoW."
Actualy thinking about it if there wasnt a merger how long would they have had WoW. Pre WoW Blizzard werent that big, since wow has been released though there has been massive growth and now out of Vivendi Games 4,000 employees 2,300 work for Blizzard. With all this growth and money being generated from WoW its not that far out to think of Blizzard ditching Vivendi and going on their own. Looking at the press release dont think we are going to be seeing joint branded Activision Blizzard games. Seirra, Seirra online and Vivendi Games Mobile will become part of Activision and Blizzard will remain on their own as they are now. When you buy a Blizzard game now there is no mention of Vivendi at all so doubt very much we will be seeing Activision logos popping up on WoW boxes. |
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Shit name for a company alright.
@Bumhug360 Eh, Vivendi own Blizzard, so it's not like Blizzard can just ditch them. Surely WoW was built largely on investment from Vivendi and not Blizzard's own cash (although they have enjoyed great success of the years). Blizzard was always entirely autonomous from Vivendi in terms of its operation and direction - big management didn't dare screw around with such a cash cow.
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most recently on 03/12/07 @ 00:25
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Fitzmogwai
03/12/07 @ 11:36
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Excellent. They can use some of that money to remake Interstate '76 then.
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"Not much of a merge, me thinks. Like a polite way of saying Activision took over"
*sigh*.. I'll say again for dumb people.. Vivendi are the majority share holder.. THEY "took over". Vivendi are the CONTROLLING share holders. Activision were "merged with" "will confuse people as they will think that all their games will be made by Blizzard " Which is a good thing. No different to when infogrames took over the atari name |
Comments: 1-32 of 32 in total
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