Video game giants in $18bn merger

[BuckNaked]

http://news.bbc.co.uk/2/hi/technology/7123582.stm

Video game giants in $18bn merger
By Rory Cellan-Jones
Technology correspondent, BBC News

The companies behind Call of Duty and World of Warcraft are merging in a deal which could shake up the global video games industry.

Activision and Blizzard have said they will form "the world's most profitable games business" in a deal worth $18.8bn (£9.15bn).

US-based Activision also makes hit console games such as the Tony Hawk series and Guitar Hero.

Nine million people pay a monthly subscription to play World of Warcraft.

'High-growth industry'

Blizzard is the biggest player in online gaming and Warcraft is the global market leader of what are known as massively multi-player online role-playing games, or MMORPGs.

It is currently owned by the French media group Vivendi.

As part of the merger plan, Blizzard will invest $2bn in the new company, while Activision is putting up $1bn.

The merged business will be called Activision Blizzard and its chief executive will be Activision's current CEO Bobby Kotick. Vivendi will be the biggest shareholder in the group.

Jean-Bernard Levy, Vivendi chief executive, 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."

Different strengths

The two firms are hoping that their different strengths will combine to form a business which is powerful on every gaming platform and in every territory.

Blizzard is strong in Asia, where its Starcraft series has proved hugely popular.

Starcraft, a strategy game first released in 1998, is played by millions of South Koreans in gaming cyber-cafes, and by professional gamers on television.

Activision has developed a presence on all three new generation game consoles - Microsoft's Xbox 360, Sony's PlayStation 3 and the Nintendo Wii - with franchises such as Spider-Man and X-Men.

The games software industry has been through turbulent years, with companies changing ownership and going in and out of business in rapid succession.

Activision was formed in 1979 and went through bankruptcy and a series of alliances and mergers before becoming successful.

Blizzard had been through a number of owners before ending up in the hands of Vivendi in 1998.

Maybe this will shake up EA a little and they might start turning out some better products....

lol, yeah right...

 

[coldmeat]

This is already in PC Gaming.

 

[invidia]

Repost from the PC gaming forums: http://forums.anandtech.com/me...=2125588&enterthread=y

The merge will have nothing to do with the development of Blizzard games nor its management/employees if you read their FAQ.... hopefully

 

[thecoolnessrune]

Call of Warcraft 3!

Pay a mere $20 a month to play in a perpetual World War II! Fight as an American, Russian, Japanese, British, Orc, or Dark Elf!

 

[Argo]

I thought Blizzard was owned by Vivendy.

 

[invidia]

Originally posted by: Argo
I thought Blizzard was owned by Vivendy.

They're still are under ownership of Vivendi Games. I think this is more like a Vivendi take over of Activision.

 

[aplefka]

Maybe Starcraft 2 will actually come out in 2008 now. I just hope it isn't glitchy like some Activision games.

 

[effee]

No way SC2 is going to be out in 08

 

[Lonyo]

Originally posted by: invidia

Originally posted by: Argo
I thought Blizzard was owned by Vivendy.

They're still are under ownership of Vivendi Games. I think this is more like a Vivendi take over of Activision.

Vivendi Games merger with Activision.

Please OP change the title of this thread, and remove the link to the BBC news story, and instead link to the official press release (http://www.blizzard.com/press/071202.shtml)

It will stop the random panic from people who take the BBC news story at face value as being an accurate picture of what is happening. (It's not)

 

[Omegachi]

call of duty 5: warcraft warfare

 

[0roo0roo]

i don't care about activision, but hopefully blizzards quality doesn't slide

 

[Eeezee]

Originally posted by: Lonyo

Originally posted by: invidia

Originally posted by: Argo
I thought Blizzard was owned by Vivendy.

They're still are under ownership of Vivendi Games. I think this is more like a Vivendi take over of Activision.

Vivendi Games merger with Activision.

Please OP change the title of this thread, and remove the link to the BBC news story, and instead link to the official press release (http://www.blizzard.com/press/071202.shtml)

It will stop the random panic from people who take the BBC news story at face value as being an accurate picture of what is happening. (It's not)

I've read both and found the BBC article to be quite accurate, actually.

Also, your link is broken.

 

[Eeezee]

Originally posted by: 0roo0roo
i don't care about activision, but hopefully blizzards quality doesn't slide

That's really what matters in the end. Blizzard has always made kickass games, and they've managed to not screw up after all of these years. It's pretty incredible when you think about it. Every development company seems to have its share of games that suck but make tons of money as a movie tie-in.