Activision and Blizzard parent merge in $18 billion deal
by Griffin McElroy 
{ Dec 2nd 2007 at 12:43PM }
The reports we've read so far seem to confuse the matter of Vivendi's role in the merger, and who will be "wearing the pants" in the relationship, so to speak. As we understand it, Vivendi and Activision will be the ones who are merging, despite Blizzard's name being in the company's new moniker. Vivendi will own approximately 52% of the ownership stake in Activision Blizzard, though Activision's current CEO, Bobby Kotick, will take the chief executive position in the new company.
Jean-Bernard Lévy, Vivendi's chief executive, expressed his excitement about the supercollision -- "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."
We'll be sure to keep you updated as soon as we get a clearer understanding of the details of the merger. No doubt the internet will be abuzz with industry analysts chiming in about the ramifications of this huge business deal. We predict to see elves on skateboards by first quarter 2008, but we'll leave the conjecture up to the big dogs.
Update - 6:00PM EST: Worried about WoW? Blizzard wants to brush your hair and tell you everything is going to be alright. Also, the Vivendi Games/Activision management team will hold an investor conference call tomorrow at 8:30 in the morning, EST. We'll make sure to keep you updated on the full details of the merged company's future plans, should they arise during the meeting.
Update - 8:15PM EST: GameSetWatch's Simon Carless analyzes the combination of the two gaming colossi.
Update 12/3/07 - 11AM EST: We've written up our notes from this morning's Activision Blizzard conference call.
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Reader Comments (Page 1 of 2)
Fernando Rocker @ Dec 2nd 2007 12:47PM
Guitar Hero MMO... now with more Ads!
pixelator @ Dec 2nd 2007 10:21PM
WORLD OF PITFALL!...
You heard it here first. Lv70 Alligator with 4th Tier Elite gear FTW.
Yuccadude @ Dec 2nd 2007 12:48PM
Call of War? Star Hawk? Orc Hero? What will we be seeing next?
mr nimblewick (SegaDF - Jogurt Ring) @ Dec 2nd 2007 3:43PM
Will Falco be in Star Hawk?
Yuccadude @ Dec 2nd 2007 5:58PM
I was kind of thinking it was a mix between Starcraft and Tony Hawk, but why not, it could also be a platformer. Play Star Hawk, the first skateboard platformer real-time strategy game!
TheBigC @ Dec 2nd 2007 12:57PM
Let the mass lay-offs commence!
copa @ Dec 2nd 2007 1:02PM
Why would Vivendi need this? This doesn't make any sense to me.
Jon @ Dec 2nd 2007 1:03PM
To create a publishing/developing house strong enough to rival EA and Ubi. Business wise it probably makes sense to consolidate.
copa @ Dec 2nd 2007 1:44PM
But why? The fact that EA is bigger has never impacted Blizzard's ability to make top-quality games, and to make massive amounts of money.
sheppy2.0 @ Dec 2nd 2007 1:58PM
I'd say it has more to do with the fact that Activision has bigger publishing capabilities than Vivendi. Here's the thing, Vivendi is using a ton of it's resources to develop new IPs. One could speculate the acquisition of Activision could merely be an attempt to acquire safety income.
copa @ Dec 2nd 2007 3:06PM
World of Warcraft brings in more than $1 billion a year in high-margin revenue. These are sticky, recurring subscriptions.
Vivendi is the source of safety income, not Activision.
ukickmydog @ Dec 2nd 2007 3:27PM
/agree with copa
Kohath @ Dec 2nd 2007 3:49PM
Vivendi is also the owner of the Universal Music Group. They're the world's largest music publisher.
They probably want in on Guitar Hero. The music business sucks lately, but the Guitar Hero business is outstanding.
Victor @ Dec 2nd 2007 1:03PM
speechless
Yuccadude @ Dec 2nd 2007 1:05PM
Luckily you can type, amirite?
Victor @ Dec 2nd 2007 1:09PM
indeed
flameofdoom666 @ Dec 2nd 2007 1:05PM
"Activision Blizzard"
What a BAD name!
ThornedVenom @ Dec 2nd 2007 9:25PM
It's a very BAD name.
They should have named it Blizzard Activision.
CEOofImaginativeBusinessNames @ Dec 2nd 2007 1:08PM
Acti-Blizz baby
Ignatius @ Dec 2nd 2007 3:32PM
Blizzvision!
Hell yeah.
Now you're watching with Warcraft.
Kenji F @ Dec 2nd 2007 1:10PM
Does this mean no more Blizzard games for Mac?. Knowing Activision's record with the Mac community (Licensing everything to Aspyr)...
Bootes @ Dec 2nd 2007 1:25PM
Blizzard is a developer owned by the publisher VU Games. VU is basically taking control of another large publisher, Activision.
This has nothing to do with Blizzard making Mac games.
Ross Miller @ Dec 2nd 2007 1:10PM
Gotta be honest, I'm a bit worried. Blizzard has a near-perfect track record and are willing to wait on releasing a game until it meets their standards, bar none. Will Activision's management allow that? Will Blizzard's elite (yet again) flock to other companies? I'm hesitant.
Oh, and of course, Guitar Hero Rocks the Protoss (or is it Lost Vikings: Rocks the 1880's? I can't recall).
Zsavior @ Dec 2nd 2007 1:26PM
Not mocking you but have you played Wow? Mistaking blind loyalty of a fan base between excellence in gaming is really propping up blizzard's name right now.
I seeing blizzard's actions towards WOW and this doesn't surprised me, they are turning the corner to were the money is. And MMOs are the new battle ground, I think Vivendi is just trying to add to its war chest, whether that is good or bad is yet to be seen but it seems like a good decision right now.
Seriously an MMO is almost too sweet if you can tap the casual market just right. Which is a good thing I think the MMO world is one of the rare examples of gaming where the casuals should pretty much dictate the progression of the world. Between Warhammer which seems to be changing, and Turbine studios, Vivendi probably knows the next year or two they will have a huge battle on their hands, and they are taking steps to ensure revenue.
Jimiisama @ Dec 2nd 2007 5:00PM
Don't gray the man out; he's right. I mean seriously... WoW took a dive when they tried to make it appeal to casual gamers; it's a goddamn MMO! Why should they try to appeal to casual gamers?
Jeff @ Dec 2nd 2007 8:12PM
I agree with Zsavior. My effort did not bring him out of the gray, so I had to restort to a post =P
Zsavior @ Dec 3rd 2007 5:18AM
Holy crap I came back and got voted down, not the first time Wowbots have attacked me. I just don't know what I said this time, I have no beef with casuals I like an MMO surrounded by them thus keeping things in check. My beef is blizz hasn't implemented anything right they are just band aid measurements around huge problems. Bah it doesn't matter. You can't argue with a juggernaut and the fanboy rule is anarchy.
Shockgamer @ Dec 2nd 2007 1:12PM
Blizzard just commited brand suicide. It's going to be pretty hard to associate your name with quality and "releasing it when it's done" when you're standing next to Tony Hawk 8 and Spider-man 3.
I guess Guitar Hero players can look forward to unlockable Orcs and Zerg in 4.
Nessuno @ Dec 2nd 2007 2:12PM
I think this is exactly right.
"Activision Blizzard"? What a terrible decision. The Blizzard brand means something specific. It's a specific game developer with a specific way of doing things, and it has earned a tremendous amount of respect from gamers for quality and fun.
But now the Blizzard name will be attached to a whole slew of games that the people earned that respect have no control over. It's a guarantee that almost none of those games will live up to the Blizzard brand.
Oldschool Bliz employees cannot be happy with this.
Idontknowanymore @ Dec 2nd 2007 1:14PM
And the video game industry moves one step closer to becoming a flaming pile of generic crap like the movie and music industries.
Squirrel3D @ Dec 2nd 2007 2:47PM
Sad, but true.
Ihya @ Dec 2nd 2007 1:15PM
Wow, the Blizzard brand has been somewhat diluted now.
MD/V @ Dec 2nd 2007 1:19PM
I prefer Actard or Blizzion myself.
Antonio @ Dec 2nd 2007 1:31PM
I'd go for Activizzard
KHCloud @ Dec 2nd 2007 3:20PM
I think Activision Universal would've been in better taste than Activision Blizzard.
samfish @ Dec 2nd 2007 6:21PM
Activizzard's logo can be a lizard on a surf board.
Tango Charlie @ Dec 2nd 2007 6:36PM
How about the elegant "Activizzion"?
Clack @ Dec 2nd 2007 8:31PM
"Activizzard's logo can be a lizard on a surf board."
Sobe would sue them and win.
Clay @ Dec 5th 2007 3:35AM
definitely Activizzion!
Bootes @ Dec 2nd 2007 1:29PM
http://www.forbes.com/feeds/ap/2007/12/02/ap4394786.html
SANTA MONICA, Calif. -
Vivendi SA said Sunday that it plans to acquire a controlling stake in Activision Inc. and combine the video game publisher with Vivendi Games in a deal the companies valued at $18.9 billion.
The combination of Santa Monica-based Activision (nasdaq: ATVI - news - people ), whose titles include "Guitar Hero," "Call of Duty" and the "Tony Hawk" series, and Vivendi Games, which publishes "Crash Bandicoot" and owns the online role-playing franchise "World of Warcraft," would create the world's largest pure-play online and console game publisher, the companies said.
Under the agreement, shares of Vivendi Games will be converted into 295.3 million new shares of Activision common stock at a price of $27.50 per share, the companies said in a statement.
Vivendi, based in Paris, France, will purchase 62.9 million newly issued shares of Activision common stock at a price of $27.50 per share, giving Vivendi a 52 percent stake in the new company to be called Activision Blizzard.
After the transaction closes, expected in the first half of 2008, Activision Blizzard will launch a $4 billion all-cash tender offer to purchase up to 146.5 million Activision Blizzard common shares at $27.50 each. Vivendi also has agreed to acquire an additional $700 million of newly issued Activision shares, giving Vivendi about a 68 percent stake in Activision Blizzard if the offer is tender offer is fully subscribed.
The offer price is a 24 percent premium to Activision's closing price Friday of $22.15 per share.
Activision Blizzard will continue to operate as a public company traded on the Nasdaq Stock Market (nasdaq: NDAQ - news - people ) under the ticker ATVI.
The merger will provide Activision Blizzard with the most diversified and broadest portfolio of interactive entertainment assets in the industry, according to the statement.
ukickmydog @ Dec 2nd 2007 1:32PM
GG.
but really, it's a smart business move, but i hope blizzard stays close to it's current (past?) business model. a really unforeseen merger haha
Arteen @ Dec 2nd 2007 1:34PM
I would have preferred the name Blizzardvision, Universal Blizzardvision, or even Active Universal Blizzardvision.
Drew @ Dec 2nd 2007 1:40PM
Blizzardvision sounds like a Superman ability...or rather Bizarro.
Still I wonder what will happen. Since it took Squenix time to make that Party type of game that combined both FF and DQ... Will Activision Blizzard do something weird?
nick @ Dec 2nd 2007 1:40PM
I guess they weren't too keen on using Activizzard or Blactivision :)
The new name, Activision Blizzard is pretty lame though, and sounds like they put little, if any effort into the new name. My guess, this was to appease VU, so that part of their entity is in the name.
I'm guessing, they'll eventually change their name back to Activision in a year or two, after they come back to their senses, and realize it's the stronger brand. Kinda like Time Warner, when they dropped AOL from their name.
MasterInsan0 @ Dec 2nd 2007 4:06PM
At least Vivendi was very aware of where their income comes from when they chose "Blizzard" to represent them instead of "Vivendi".
HighFiveJesus @ Dec 2nd 2007 1:47PM
So we'll be getting this game by next year.
http://www.penny-arcade.com/comic/2007/11/09
Ben Hobbs @ Dec 2nd 2007 1:47PM
With the dollar performing so badly, I wouldn't be surprised to see more US companies being bought up by the Europeans.
I wonder how many Americans even knew that WoW is French ?
hybridc @ Dec 2nd 2007 2:10PM
I hope you're kidding because Vivendi Games and Blizzard are both US based (both in California in fact) Vivendi SA is French but that has no bearing on the fact that Blizzard and the WoW team are full of Americans. Nice try.
That having been said, I'll give you the dollar < euro.
Nessuno @ Dec 2nd 2007 2:15PM
That's silly. WoW is not French.
Ben Hobbs, you have a very weak grasp on both game development and corporate structures.
Ben Hobbs @ Dec 3rd 2007 2:26AM
Whats hard to understand, Vivendi is French, Vivendi own WoW, WoW is French, as in owned by a French company. So they have USA employees and divisions, still French I'm afraid.