Blizzard entertainment and Activision to merge

[Miuku.]

SANTA MONICA, Calif. & PARIS--(BUSINESS WIRE)--Activision, Inc. (NASDAQ: ATVI) and Vivendi (Euronext Paris: VIV) today announced that they have signed a definitive agreement to combine Vivendi Games, Vivendi's interactive entertainment business -- which includes Blizzard Entertainment’s? World of Warcraft?, the world’s #1 multi-player online role-playing game franchise -- with Activision, creating the world’s largest pure-play online and console game publisher. The new company, Activision Blizzard, is expected to have approximately $3.8 billion in pro forma combined calendar 2007 revenues and the highest operating margins of any major third-party video game publisher. On closing of the transaction, Activision will be renamed Activision Blizzard and will continue to operate as a public company traded on NASDAQ under the ticker ATVI.

Activision, one of the world’s leading independent publishers of interactive entertainment, is best known for its top-selling franchises, including Guitar Hero?, Call of Duty? and the Tony Hawk series, as well as Spider-Man™, X-Men™, Shrek?, James Bond™ and TRANSFORMERS™. Blizzard Entertainment, a division of Vivendi Games, has projected calendar 2007 revenues of $1.1 billion, operating margins of over 40% and approximately $520 million of operating profit. Blizzard owns the #1 multi-player online role-playing game franchise, World of Warcraft, which currently has over 9.3 million subscribers worldwide. Blizzard’s World of Warcraft, Warcraft?, StarCraft? and Diablo? games account for four of the top-five best-selling PC game titles of all time. Vivendi Games also owns popular franchises, including Crash Bandicoot™ and Spyro™. Pro forma for calendar 2007, Activision Blizzard expects to generate approximately 70% of its revenues from owned franchises. As a result of the business combination, Activision Blizzard expects to have the most diversified and broadest portfolio of interactive entertainment assets in its industry, positioning the combined company to capitalize on the continued worldwide growth in interactive entertainment.

Source: Businesswire

Well, this can't be good.

[Prosidius]

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.

[spenser.d]

I dunno why you'd think that. Activision puts out some pretty great games. I'm actually less a fan of Blizzard than Activision, but only because I'm just not really interested in the games they create, not because I think they aren't a great quality developer.

-Spenser

[Slimy]

Holy **** this is huge!

[macrosslover]

maybe activision can actually finish starcraft ghost....

[(Spork)]

this will be HUGE !

[Miuku.]

https://www.neowin.net/forum/index.php?showtopic=604400

On retrospect, I should've posted that in BPN.

[Tech Star]

Wow, I am surprised that Blizzard would do this. :blink:

[Lexcyn]

Wow ... never saw this coming at all. Wonder what's going to happen with any future games, such as WoW 2, etc. This will be interesting indeed.

[gregb0b]

Wow, I am surprised that Blizzard would do this. :blink:

Money talks :). I think Blizzard is getting too greedy, I guess millions in revenue monthly means nothing. Gotta go for the gold!

"WoW coming to consoles Q4 2008!"

[ShaneSparky_YYZ]

Wow, I am surprised that Blizzard would do this. :blink:

Me too, mayb they're making a game called, World of Doom 4!

[nid~vaeda]

I hope this doesnt effect Starcraft 2....that would suck big time

[Prosidius]

"WoW coming to consoles Q4 2008!"

Not a bad idea actually.

[gregb0b]

Not a bad idea actually.

To bad there is too much junk going on, and with limited buttons on a controller it would be very difficult to accomplish that :p

[Zoue]

I don't like this one bit. It's just one more step towards giant conglomerate companies monopolizing the gaming market. Too many smaller companies and games are going under because they don't have the money and resources to compete with companies like this. In the long run it only stifles competition and innovation.

[Malisk]

I don't like this one bit. It's just one more step towards giant conglomerate companies monopolizing the gaming market. Too many smaller companies and games are going under because they don't have the money and resources to compete with companies like this. In the long run it only stifles competition and innovation.

I agree, it's getting tougher and tougher for companies to compete. It doesn't just take a good game anymore, but a massive marketing engine backing it, for example.

[Freedom Phantom]

Whoa, I wonder how this will affect how blizzard works.

[Prosidius]

A Blizzard employee has posted a FAQ on the merge...

http://forums.worldofwarcraft.com/thread.h...13659&sid=1

[Tech Star]

Q: Will Activision and Blizzard now share development teams?

A: No, both of our companies will continue to operate as they have previously with regard to game development.

Then why merge? That is just stupid.

[einsteinbqat]

2 companies, different markets, different games, but combined revenues and profits!

Also, reducing structural expenses (= reducing the number of employees), thus more revenues and profits!

It's all about the money! :p

[Dogan]

After reading that FAQ all I get out of it is, "Everything will stay the same".

What's the point?

What WILL it change?

[SMELTN]

this is HUGE..

World of Call of Duty anyone?

http://forums.worldofwarcraft.com/thread.h...13654&sid=1

[DreadBoat89]

Then why merge? That is just stupid.

it is the same reason why companies buy other companies... money

[SMELTN]

After reading that FAQ all I get out of it is, "Everything will stay the same".

What's the point?

What WILL it change?

Money.. Just means the money will go to 1 central pot. And activision can put their name on the game. Also Activision is HUGE as far as Publishing goes. Just means they can now Publish Blizzards' games.

lol World of Call of Duty anyone?

[(Spork)]

Money talks :). I think Blizzard is getting too greedy, I guess millions in revenue monthly means nothing. Gotta go for the gold!

"WoW coming to consoles Q4 2008!"

blizz has said many many times before they have no plans on porting wow to console