Vivendi to sell its games division?

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Reuters reports a rumor of Vivendi selling to one of the three giants in the game industry.

Sources have reported to Reuters that Vivendi may possibly be selling their games division which includes Blizzard to one of the big boys in the biz such as EA, Microsoft, and Sony.

Vivendi Universal V.N has held talks with at least three potential suitors to sell its video game arm but no deal is believed to be near, according to banking sources familiar with the situation.

Vivendi Universal Games has talked to Microsoft, Sony, and Electronic Arts about a possible acquisition, though those conversations were described by the sources as preliminary.

The talks come as Vivendi Universal Entertainment, which encompasses the Franco-American conglomerate's TV, film, music, theme park and game assets, has itself been the subject of a takeover bid, with oilman Marvin Davis spearheading a deal worth about $15 billion for the unit.

Of course, nobody from those big three would give comments on the rumors at this point, but this is a big deal here. This isn't just a deal to get a developer, this is one of the big publishers along with a ton of development. Don't expect to see anything happen until January when the Vivendi board meets next.

View: Rueters Article

News source: IGN

"Zed Two has been tremendously successful over the last six years as a small independent developer, but we felt that we needed a wider commercial reach and greater financial support to achieve our full potential in today's market," said Steven Pickford, Zed Two's managing director. "We looked around to see who could provide this for us and Warthog were the perfect fit. They are a modern, forward thinking, well managed development house, and their talent and resources complement ours perfectly."

"We are delighted to bring Zed Two within Warthog," explained Ashley Hall, CEO of Warthog. "They are a highly experienced and reputable developer with a track record of creating original intellectual property. By allowing them to remain creatively independent, but servicing them with global sales and administrative support, we look forward to a successful future together."

Steven and John Pickford originated Zed Two in 1996 and have grown the team to 21 strong. With Zed Two on board, Warthog's workforce increased to 230 people, housed in Warthog's various locations in Cheadle (the HQ), Southern Sweden and the Manchester, UK office.

#1 frogworm on 25 Dec 2002 - 07:14

i'll be the first to say, HOLY "F-ING" CRAP BATMAN

#2 nonick on 25 Dec 2002 - 16:51

noooooooooooooooooooooooooooooooooooo!!! Vivendi ownz big time!!! dont sell dont sell!! i hate EA and i hate MS more!!!! Sony is okay.... heh

#3 Lordtroll on 25 Dec 2002 - 18:24

I heard about this awhile back. If any of those 3 get it, I hope MS. Sony games aren't my favorites and EA has been going downhill as of late. At least for me.

(10 replies) #4 iraklis2000 on 25 Dec 2002 - 18:30

Can't reveal my source but MS has the deal signed already. Just working out details. Remember the press release that MS is DOUBLING their investment in XBOX, well a large chuck is going right here.

#4.1 jago6498 on 25 Dec 2002 - 20:45

[neoquote=#4.0 by iraklis2000]Can't reveal my source but MS has the deal signed already. Just working out details. Remember the press release that MS is DOUBLING their investment in XBOX, well a large chuck is going right here.[/neoquote] So much actually TRYING to develop games themselves...guess they would rather have someelse make the games for them while M$ takes in the profit...

#4.2 Marshalus on 25 Dec 2002 - 21:07

As long as it's going to Microsoft or EA, that way Blizzard will still develop for the PC or XBox. I wonder of Starcraft: Ghost for PS2 and GC will be dropped?

#4.3 kuregu02 on 25 Dec 2002 - 21:29

[neoquote=#4.1 by jago6498]So much actually TRYING to develop games themselves...guess they would rather have someelse make the games for them while M$ takes in the profit...

[/neoquote] Watch it! Sony did the same thing when they were starting out.

#4.4 FatCat on 26 Dec 2002 - 02:04

Microsoft Starcraft 2

#4.5 iraklis2000 on 26 Dec 2002 - 03:02

Well, people whinned and cried about console specific games, well you got it. MS is going to buy up as many developers as possible. Why develope from scratch when you can buy the expertise and loyal following of another. They got the right idea. Sony is going to either start doing the same, or pay big bucks for contracts that only last for one game(Like Rockstar contracts, Drivers 3 is not console specific). Not many companies are willing to lock themselves to a single console any longer. Companies that thried to fight Microsoft in the PC world, and won, are not many, and far between, so developers are not willing to take the same risk and go against big bad MS. So crossplatform games are the wave of the future, and whatever developers one can buy, are the only conslole specific games we are going to see. Sony is going to have to start spending money or get caught sleeping.(Like they have with XBOX Live)

#4.6 kuregu02 on 26 Dec 2002 - 11:04

I love it how you guys are saying Microsoft is buying out all the competition. But there was only ONE time you should be complaining about. Microsoft bought out Bungie. Bungie didn't put themselves up for sale. Nintendo put Rare up for sale and Vivendi is putting its game division up for sale. BIG difference. Microsoft just got to them first. So in essence Microsoft isn't buying out the competition (these companies hardly represent competition anyway), they are just buying companies that put themselves up for sale (with the exception of Bungie).

Last edited by 13738 on 26 Dec 2002 - 11:35

#4.7 iraklis2000 on 26 Dec 2002 - 14:26

what is the difference? If Microsoft makes an offer to a company(buys them out) or the company puts itself on the selling block, and MS outbids everyone else. Either way, MS is buying out the competition, because the competition will more than likely NOT get any of the titles developed by these developers. I don't like the fact that this is happening, but the competition has FORCED Microsoft to do just that. For the past year all you heard was Sony talk about its console specific games(GTA3,GT, etc) Well, get ready for MS to fire back, but not only with single game contracts, but the whole developer teams signed to MS for life. MS has the most money, and they will starve the competition, by lowering console prices(there has never been a console price war like the one now), and buying out developers and signing contracts to starve the game supply.(XBOX already has the highest attach rate for any 1 year old console, 4.7 games per console sold in the last 12 months, that is 4.7*49.99 = $235, the attach rate for the PS2 after 12 months was below 4, imagine if the XBOX had good games...hint hint) All they need is another big name(read: SEGA Studios) and the market is going to go through a BIG change.

#4.8 kuregu02 on 26 Dec 2002 - 14:45

[neoquote=#4.7 by iraklis2000]and buying out developers and signing contracts to starve the game supply[/neoquote] So if Sony bought both Rare and Vivendi, that wouldn't "starve the game supply"? SOMEONE was going to buy them. Why can't it be Microsoft?

#4.9 iraklis2000 on 26 Dec 2002 - 15:39

no, I have NO problem with MS buying them. I think the companies(Bungie,Rare, possibly Vivendi, Sega is still a hope) are better off owned by MS. Better console, more money, and better online capability.

#4.10 kuregu02 on 26 Dec 2002 - 16:09

[neoquote=#4.9 by iraklis2000]no, I have NO problem with MS buying them. I think the companies(Bungie,Rare, possibly Vivendi, Sega is still a hope) are better off owned by MS. Better console, more money, and better online capability.[/neoquote] Oh, ok, hehe. I misinterpreted what you were saying.

(2 replies) #5 Cathail on 26 Dec 2002 - 15:01

I certainly hope M$ doesn't get them. Nearly every game company that has been bought by them has all but vanished. And the recent purchases, such as Bungie, has had PC dev taken away from them and been forced to do X-Box dev only, despite all assurances. Not that I can fault M$ entirely for this, they want to promote their own products, but I would hate to see Blizzard become an X-Box only company.

#5.1 kuregu02 on 26 Dec 2002 - 15:06

[neoquote=#5.0 by Cathail]but I would hate to see Blizzard become an X-Box only company. [/neoquote] Well Microsoft DOES make PC games, so... And Halo IS coming to PC. And don't expect Rare to release a game for XBOX three months after it was bought, so they are still around. Think about it, why would Microsoft buy out Rare just to not release any games. Seems like a waste of money to me.

#5.2 BarryJ on 26 Dec 2002 - 18:05

It's like a game of chess. Sometimes you make a move because you gain something - other times you make a move simply to prevent your opponent from gaining somthing.

(1 reply) #6 frogworm on 26 Dec 2002 - 19:38

c'mon ppl, get your panties out of a knot... Rare will still end up making Project Dark 2 for xbox with now more fundings. Bungie will still (although developed by third party now) have a Halo for PC. M$ isn't going to buy Vivendi, thats a huge price tag, vivendi is selling game assests, Blizzard is an excellent company that always makes its fans happy, with more funding from 1 of the big 3, don't you think that will be even better for us, the fans? Sony is winning the console market as of now so i think they have enough software companies on their side. EA doesn't diserve (and probably doesn't want) them, thats not their bag of business, EA is mostly all simulation games, Blizzard is mostly all sci-fi games. and on a last note, they may maynot be playing economy chess with eachother but... you will not see our loved software developers die in the battle, they are humans, don't they have to work and make a living and continue to do what they love? And there is new game companies popping up every month making PC games, don't think all developers are moving to console... cause they aren't.

#6.1 Marshalus on 26 Dec 2002 - 19:48

EA does own the CNC series. It'd be funny to see Blizzard and Westwood working side by side on a project

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