Paris, France — Dec 02, ‘07 — The French and US companies behind the hugely popular video games “World of Warcraft” and “Call of Duty” announced Sunday that they are merging in an 18.9 billion dollar deal, which could shake up the global video games industry.
Vivendi, the French media and entertainment conglomerate, said Sunday that it planned to acquire a controlling stake in the US video game publisher Activision in a deal aimed at taking advantage of booming video game markets like South Korea and China.
Under the agreement, which values Activision at $18.9 billion, Vivendi would combine its game division with Activision, creating the largest video game company in the world that is not owned by a maker of game consoles.
Vivendi and Activision executives said that by combining the two game businesses, they could help Activision, which has developed popular games for consoles like the Sony PlayStation 3 and Microsoft’s Xbox 360, move more strongly into online “massively multiplayer” games, which have legions of devoted fans in Asia and elsewhere.
Vivendi has specialized in multiplayer games like “World of Warcraft,” which has more than nine million players worldwide, including millions of paying subscribers in China and South Korea, making them some of the only successful Western entertainment exports in a region ravaged by piracy.
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.”
Meanwhile, as news of the merger reached the ears of videogamers Sunday morning, many of them began to wonder if they should be getting ready to play a merged game called “World of Guitarcraft.”
More at Vivendi. (in pdf)