StarshipTrooper
12-02-2007, 10:07 PM
Posted: Sun., Dec. 2, 2007, 12:00pm PT
Activision, Vivendi Games merge
Combined company called Activision Blizzard
By BEN FRITZ
Activision and Vivendi Games, two of the vidgame industry’s biggest publisher, shocked the biz Sunday by announced that they are planning to merge.
Combined company will be called Activision Blizzard, after Vivendi’s “World of Warcraft”-publishing subsid Blizzard. Deal values the new entity at $18.9 billion, which makes it the world’s biggest vidgame publisher, slightly ahead of Electronic Arts.
Vivendi Games chairman Rene Peni sson will be chairman of the combined entity.
L.A.-based Activision, typically the no. 2 publisher in sales behind EA, is best known for franchises including “Tony Hawk,” “Call of Duty,” and “Guitar Hero.” It also has licensing deals to make vidgames based on Marvel Comics and DreamWorks Animation properties.
Vivendi’s most valuable asset by far is “Warcraft,” though it also owns the “Crash Bandicoot” and “Spyro” franchises. It is currently working on its second “Scarface” game and recent signed a deal with Sony Pictures to make a series of “Ghostbusters” vidgames.
In a statement, Activision CEO Bobby Kotick called the deal “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,” he continued.
French conglom Vivendi, which held onto its vidgame unit when selling Universal Studios to GE in 2003, will own approximately 52% of Activision Blizzard once the deal is completed. It is contributing its entire Vivendi Games unit, valued at $8.1 billion, plus $1.7 billion in cash in return for the stake.
In addition, Activision Blizzard will launch a $4 billion offer to purchase up to 146.5 million share in the new company from existing Activision stockholders at $27.50 per share, a 24% over Friday’s closing price. If the offer is fully subscribed, Vivendi will end up owning 68% of Activision Blizzard.
Bobby Kotick will be CEO and prexy of Activision Blizzard. Vivendi Games head Bruce Hack will become Vice Chairman and Chief Corporate Officer, in charge of the merger integration and all finance, HR and legal functions. Mike Morhaime, head of Blizzard, will continue to lead that entity, while Activision publishing prexy Mike Griffith will retain his role and also oversee all of Vivendi’s non-Blizzard games.
http://www.variety.com/article/VR1117976875.html?categoryid=1009&cs=1&nid=2562
Activision, Vivendi Games merge
Combined company called Activision Blizzard
By BEN FRITZ
Activision and Vivendi Games, two of the vidgame industry’s biggest publisher, shocked the biz Sunday by announced that they are planning to merge.
Combined company will be called Activision Blizzard, after Vivendi’s “World of Warcraft”-publishing subsid Blizzard. Deal values the new entity at $18.9 billion, which makes it the world’s biggest vidgame publisher, slightly ahead of Electronic Arts.
Vivendi Games chairman Rene Peni sson will be chairman of the combined entity.
L.A.-based Activision, typically the no. 2 publisher in sales behind EA, is best known for franchises including “Tony Hawk,” “Call of Duty,” and “Guitar Hero.” It also has licensing deals to make vidgames based on Marvel Comics and DreamWorks Animation properties.
Vivendi’s most valuable asset by far is “Warcraft,” though it also owns the “Crash Bandicoot” and “Spyro” franchises. It is currently working on its second “Scarface” game and recent signed a deal with Sony Pictures to make a series of “Ghostbusters” vidgames.
In a statement, Activision CEO Bobby Kotick called the deal “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,” he continued.
French conglom Vivendi, which held onto its vidgame unit when selling Universal Studios to GE in 2003, will own approximately 52% of Activision Blizzard once the deal is completed. It is contributing its entire Vivendi Games unit, valued at $8.1 billion, plus $1.7 billion in cash in return for the stake.
In addition, Activision Blizzard will launch a $4 billion offer to purchase up to 146.5 million share in the new company from existing Activision stockholders at $27.50 per share, a 24% over Friday’s closing price. If the offer is fully subscribed, Vivendi will end up owning 68% of Activision Blizzard.
Bobby Kotick will be CEO and prexy of Activision Blizzard. Vivendi Games head Bruce Hack will become Vice Chairman and Chief Corporate Officer, in charge of the merger integration and all finance, HR and legal functions. Mike Morhaime, head of Blizzard, will continue to lead that entity, while Activision publishing prexy Mike Griffith will retain his role and also oversee all of Vivendi’s non-Blizzard games.
http://www.variety.com/article/VR1117976875.html?categoryid=1009&cs=1&nid=2562