Activision Merges With Vivendi Games
EA CEO Wrong as $18.8 billions Merger Rocks Gaming Industry
http://news.bbc.co.uk/2/hi/technology/7123582.stm
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Just days after Electronic Arts CEO said the the gaming industry should see a slow down in mergers Activision and Vivendi Games have announced that they plan to merge the companies to form Activision Blizzard. The firms responsible for the Call of Duty, Guitar Hero, Starcraft and Warcraft franchises will come together in an estimated $18.8 billion deal.
The new company will see current Activision CEO Bobby Kotick keep his title with Vivendi Universal claiming a majority 52% stake in Activision Blizzard which will remain under Activision's current stock symbol, 'ATVI.' Both firms believe that the added catalog from their new partner will bring the company together to create "the world's most profitable games business." Vivendi Games' Blizzard Entertainment is currently the company to beat in the Western MMORPG market with World of Warcraft and a staple in the RTS industry including Starcraft which might as well be South Korea's national sport.
Vivendi CEO Jean-Bernard Levy said, "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."
The new company will see current Activision CEO Bobby Kotick keep his title with Vivendi Universal claiming a majority 52% stake in Activision Blizzard which will remain under Activision's current stock symbol, 'ATVI.' Both firms believe that the added catalog from their new partner will bring the company together to create "the world's most profitable games business." Vivendi Games' Blizzard Entertainment is currently the company to beat in the Western MMORPG market with World of Warcraft and a staple in the RTS industry including Starcraft which might as well be South Korea's national sport.
Vivendi CEO Jean-Bernard Levy said, "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."
Whoa. Didn't see this happening. Activision must be doing the happy dance and EA must be concerned. Activision was already starting to nip at their heels and with this merger, they are now a serious force.
