Vivendi And Activision Create New Industry Behemoth: Activision Blizzard
Vivendi Games (the owner of Blizzard) and Activision settled on a new deal that would bring the concept of industry behemoth up to new heights: the creation of a new company dubbed Activision Blizzard.
December 3, 2007
The deal will have Vivendi take a 52% stake in Activision Blizzard at Closing, in return for its contributing with Vivendi Games (valued at $8.1 Billion) plus $1.7 Billion in cash in exchange.
The total transaction was valued at $18.9 billion, the kind of figure that would make any businessman smile for decades.
Speaking of businessmen, all those involved in the deal came up with very optimistic statements:
"We are very confident that by combining forces, Activision Blizzard will set the highest standards in quality, reputation and profitability, and will bring together the best creative teams in the industry," said René Penisson, Member of the Management Board of Vivendi and current Chairman of Vivendi Games. "The combination of this unique product portfolio with highly professional employees gives us great confidence in the growth prospects for Activision Blizzard."
Although the new company is to be known as Activision Blizzard, it will continue to trade on NASDAQ under the ticker ATVI.
Needless to say, the new merger is nothing but bad news to Electronic Arts, who might experience some rougher competitions for the first place in the future. On the other hand, this might also be bad news for the regular gamer. Big publishers like to play for the big cash, and this most often means less creativity and more watered down sequels.