Vivendi Games swallowed in a Blizzard

Mike Bantick
Tuesday, 04 December 2007 14:48

Your IT - Entertainment

Activision Blizzard is the new company formed from the combination of Activision (Call of Duty 4 , Tony Hawk Proving Ground , Guitar Hero, Transformers) with Vivendi Games including Blizzard Entertainment (World of Warcraft, StarCraft, Diablo) instantly creating a behemoth gaming company to rival any.

Growth is good right?  Well then this recent announcement must therefore be one of the best ever for the video game industry.

Combining two highly successful publishers into the one collaboration, please welcome Activision Blizzard.

Swallowing up Vivendi Games by converting it into 295.3 million shares of Activision common stock (US$8.1 billion), Vivendi Entertainment will then buy back approximately 52 % of the new company.  Then through a series of orchestrated buy backs and reissues, Vivendi should end up with 68% diluted ownership of Activision Blizzard.

With a captive 9.3 million subscribers alone to World of Warcraft, and some of the biggest franchises going in gaming at the moment, it is no wonder the "suits" were quick to comment about the merger.

Jean-Bernard Levy, Chairman of the Management Board and Chief Executive Officer of Vivendi stated: "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. We are excited about the opportunities for Activision Blizzard as a broader entertainment software platform. We believe this transaction will create significant value for Activision Blizzard and Vivendi stockholders. In Activision, we have found a partner with a highly complementary business and strong operating team. Bobby Kotick and Brian Kelly are industry pioneers, well known for creating shareholder value. 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."