N'Gai Croal
|
Dec 2, 2007 12:27 PM
On Sunday morning, Vivendi announced its plans to combine its
videogame unit with Activision announced their plans to merge, creating
what the two companies say is the world's largest videogame publisher.
Vivendi, which is contributing $1.7 billion in cash to the venture,
will own 52 percent of the new company; however, Activision chairman
and CEO Robert Kotick will emerge as the president and CEO of
Activision Blizzard, while Bruce Hack, current CEO of
Vivendi Games, will serve as vice-chairman and chief corporate officer
of the combined company. Following the deal, Activision Blizzard will
seek to repurchase up to 146.5 million of its shares, or a 31 percent
premium on Activision's recent share price.
Activision is best known for its Guitar Hero, Call of Duty and
Tony Hawk franchises, while Vivendi, which has had success of late with
such games as Scarface: The Word Is Yours and F.E.A.R., has become
known in recent years as the house that Blizzard kept afloat, thanks to
the outlandish success of the massively multiplayer online game World
of Warcraft. We expect to
have more coverage of today's announcement in the days ahead.
To read the full press release, click on the link below.
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