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World of Warcraft: Blizzard to Merge with Activision

SzarkSzark News ManagerMember Posts: 4,420

Blizzard has announced that, along with the other companies that make up Vivendi Games, they have come to an agreement with Activision that will see the companies merging to become Activision Blizzard.  Blizzard has been quick to reassure players that there will be no changes to the daily operation of Blizzard or World of Warcraft.

December 2, 2007 (Santa Monica, Calif. and Paris, France) – 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.

Jean-Bernard Lévy, 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."

Read more here.

Read the Activision Blizzard FAQ here.

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Comments

  • korvasskorvass Member Posts: 616

    Smart move I'm sure, but really, what is the point in even mo money, mo money, mo money!? At a certain point you have all the money. Then what?

    Anyways, Blizz and Activision can probably pull of some new things. Wait, is that the sound of Call of Duty MMO gunfire I hear on the distant breeze?

  • AlienShirtAlienShirt Member UncommonPosts: 621

    It was bad enough when Vivendi gobbled up Blizzard but merging them with Activision? Come on.

  • TedDansonTedDanson Member Posts: 513

    I read that entire article and all I got from it was "Diablo 3 = Pwned"..... 

    I am a sad panda.

  • SamillenceSamillence Member UncommonPosts: 7

    Originally posted by AlienShirt


    It was bad enough when Vivendi gobbled up Blizzard but merging them with Activision? Come on.

    Blizzard is Vivendi. They created that company to distrbute there games.

  • sunjenkweisunjenkwei Member Posts: 133

    Wow. Wow as not THE GAME.

    Amazing.

    Activision makes the best games, all the games everyone loves.

    Blizzard was a giant.

    Blizzard + Activision =

    image

  • lordtwistedlordtwisted Member UncommonPosts: 570

     I think this opens up a world of oppertunities, and I can't wait to see what this dynamic duo of a company comes up with.

     I hope this is going to be as good for the gamers as it is for the company, I know right now World of warcraft is a monster of a game subscription wise, the other game they are working on is bound to be....I also know on the console I am so fricking hooked on call of duty 4 modern warfare, I just wish it had bigger maps, and perhaps larger battles.

    Not so nice guy!

  • BlurrBlurr Member UncommonPosts: 2,155

    I'm sorry but I think they should have just left the name Blizzard on it's own.

    A game just doesn't have the same "pop" when it says "Activision Blizzard" on it compared to just "Blizzard"

    "Because it's easier to nitpick something than to be constructive." -roach5000

  • WeareweareWeareweare Member UncommonPosts: 195

    As long as this does not affect Starcraft 2, or delay it anymore than I have waited, i can't wait to see what these guys develop next together. Also I hope they keep the old blizzard logo, it rocks.

     

    10 bucks says Activision merged with Blizzard just to test out Starcraft 2 before me.

     

     

  • orkideaorkidea Member Posts: 73

    Originally posted by Weareweare


    As long as this does not affect Starcraft 2, or delay it anymore than I have waited, i can't wait to see what these guys develop next together. Also I hope they keep the old blizzard logo, it rocks.
     
    10 bucks says Activision merged with Blizzard just to test out Starcraft 2 before me.
     
     
    Starcraft 2 on a console. Ps3? :)
  • SonofSethSonofSeth Member UncommonPosts: 1,884

    1."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."    

    2. I wish I bought some Blizzard stocks.

    3. I always thought of Blizzard more as Horde, but now it smells of Alli scum.

    4. "Blizzard" definetly had more gusto than "Activision Blizzard".

    image

  • WeareweareWeareweare Member UncommonPosts: 195

    Starcraft 2 on a console such as PS3, ewww. Starcraft is meant for pc- so much more you can do with it on the computer, such as designing your own maps and you have an easier time using a mouse rather than a controller for this type of game.

  • SolanarSolanar Member UncommonPosts: 188

    gamespot made a poll out of it... with the answers being 'Good!', 'Bad!', and

    UN-FREAKIN'-BELIEVABLE

    more of a, woah wtf, when did that happen, then that's totally awesome, unbelievable.

    image
    ?played: Nearly everything.
    ?waiting: *Darkfall*, Hero''s Journey

  • abenherikabenherik Member Posts: 22

    Any stock experts out there?

    I have a lot of stock in Activision and had earlier considered buying stocks in Blizzard, however you weren't able to buy Blizzard stocks you could only buy Vivendi, and I didn't want Vivendi stocks since they are comprised of so many companies some of them I don't really believe in like the moroccan telecompany. Anyway now Vivendi will own 50+ percent of the merged company, but will the increase or decrease in share value of this new company be influenced by Vivendis general performance? Or will it be based solely on the performance of the gaming company?

    I seriously consider selling my stock at 27,5 dollars a piece (only paid 4,2 dollars for them when I bought them), which is what Vivendi will pay me...

     

  • FlummoxedFlummoxed Member Posts: 591
    Originally posted by abenherik


    Any stock experts out there?



    No but I know you'll be receiving an explanation from the company in the quarterly report of exactly what it all means.  Personally i'd just hold on to the stock.

     

    On a more sarcastic note - anything that increases competition against EA (boo! hiss!) must be a good thing.

  • knytfyreknytfyre Member Posts: 1

    Could there be a  "World of Pitfall" game in developement?

  • DrowNobleDrowNoble Member UncommonPosts: 1,297

    I wonder if this is a reaction to EA buying Bioware/Pandemic?  Plus I did read that Blizzard will be keeping its name and logo, there will be no Activision-Blizzard or anything like that.

     

  • falc0nfalc0n Member UncommonPosts: 385

    this has got to mean Diablo 3 mmo is in the very near future

  • AckbarAckbar Member UncommonPosts: 927

    Goodnight Irene.

    ----ITS A TRAP!!!----

  • SiftSift Member Posts: 258

    I can't say I'm happy about this myself.  I'm a huge blizzard fan and always have been.  Weather you like or don't like Blizzard games, you have to admit they are unique in either gameplay or popularity or perhaps a little of both.  To me Activision is an alright company who's games I sometimes like and other hate as utter c....

    Spider-Man X-Men™, Shrek®, James Bond™ and TRANSFORMERS™... Honestly those all looked utterly terrible to meCrash Bandicoot™ and Spyro™... I disliked both franchise games, so that leaves me with basically Tony Hawk, and even those haven't been good in awhile.  I don't think its a bad company I just don't think its on par in the Console world as Blizzard is for PC. 



    Now as for the new name... can you say lame?  Firstly I think it's a marketing ploy so they can put the Blizzard name infront of more titles, "Wow a New blizzard game for the Xbox Woohoo Hurray!, oh wait... this plays just like Spyro."  I see this lowering the expectations of Blizzard thusly dragging their name threw the mud.  Blizzard has had a hard enough time keeping their employees and I think this could make it even harder. 

    Now This is just In My Opinion, I don't hate Activision I just don't hold them to the same standard I hold for blizzard.  I don't like Blizzard games because they are always the most inovative but usually because they are the most stable and longest entertaining games for me.  Warcraft 3 custom maps kept me playing the game for far longer then any Activision game ever has.  But as with all things... I'm really starting to loss brand loyalty so who cares, EA proved to me with SKATE that anyone can make a good game.... Welcome to the World of Consumerism...

    image

  • JediMayaJediMaya Member Posts: 11

    The last time I saw a merger the game suffered.  I am not a console player and we don't have one in our house.  I am really hesitant that Activision can pull this off with the same quality that Blizzard was putting in.  After all, this is the same company that made the little Atari games way back when I was MUCH younger.  Most of their titles now are "shooters".  I guess this could be good news for the PvPers and bad news for those of us who want actual content.

  • expertphpexpertphp Member Posts: 25

    From this fusion i wish to have new games because WoW is old, is good for now and i play but is old, i wish to have new games... So for now i wait for Diablo 3... The NCsoft next big move is AION and im happy to see this !

  • abenherikabenherik Member Posts: 22

    I don't think people should be so concerned about the quality of games coming from this merger, as is described in some of the statements made about the merger Blizzard will remain the same company just under the umbrella of activision or more correctly activision-blizzard. This means that Blizzard will go on as usual but can now pull on resources from activision (and vice versa ofcourse) thus if Blizzard wants to make a new game they can use the graphics engine of their choosing from any similar games from Activision, thus freeing up resources to do more exciting things, and experts from both companies can join production teams of the other company for a limited time and sharing insights instead of having each team rediscover the wheel over and over again.

    It generally works this way in mergers... last week it was announced that Coors and Miller would merge but that doesn't mean that people who prefer Miller should fear that their favorite beer will start tasting more like a Coors!

  • SiftSift Member Posts: 258

    I did not see any statements saying it will not effect future operations, just current ones of World of Warcraft.

    image

  • flainusflainus Member Posts: 75

    The next game will be "World of Starcraft"

    Now that would be a cool game to play

    The me who hears what the other me can't, is the dominant one.

  • abenherikabenherik Member Posts: 22

    Sift look at this then... http://blizzard.com/press/activision-faq.shtml

    So no changes to brand names or anything the like... you are all misunderstanding how mergers work, it is not like you will be playing guitar hero in the new update to WoW or nothing, I refer back to my previous post.

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