Well when giants collide, they really do make a loud noise. It has come down the pipe this morning that Vivendi (owners of Blizzard) and Activision (owners of Infinity Ward) are merging to become a gaming ma-ma-ma-ma-mega company called Activision Blizzard. As far as I understand it at the moment, this means that AB is going to be the biggest game company out there, eclipsing the waning EA.
From my perspective, this was going to happen to EA sometime or another as they continue to lack innovation to either by companies with original IPs or to come up with their own. Sure there is the whole Spore thing, but I'll be honest with you...I'm already bored with it. Should'a come out a year ago.
So fuck, what does this really mean for those of us in the industry. It means there is one less publisher out there. It means we are becoming more and more like the bastard movie industry. Fewer people, more power. Not a bad thing in the right hands...but a horrendous thing in the wrong ones. Please please please don't fuck things up.
Rumors have already started that EA will now be looking to acquire something (Ubisoft, maybe) in order to still feel relevant. Good luck guys...have fun making another Madden game while Activision Blizzard releases Starcraft 2 on yer asses.
Here is the Vivendi Press Release and below you can read a quick blurb about the merger.
Vivendi to Acquire Control of Activision
By MATT RICHTEL
SAN FRANCISCO, Dec. 2 - In a deal that creates the biggest independent video
game publisher in the world, Vivendi announced Sunday it plans to acquire a
controlling stake in Activision.
Under the arrangement, the companies said Vivendi would pay $1.7 billion in
cash and fold its games operations into Activision's. The deal will leave
Vivendi with a 68 percent share of the combined company, to be called
Activision Blizzard.
The companies said the new entity would continue to trade publicly on
Nasdaq. Blizzard Entertainment is the name of the most successful game
studio in Vivendi's game operations.
Under the deal, Vivendi, based in Paris, will pay $27.50 a share for
Activision, a 24 percent premium over Friday's close of $22.15.
The deal combines companies with different areas of strength in the booming
video game business. Activision's emphasis is on making games for consoles,
like the Sony PlayStation 3 and Microsoft Xbox 360. Its game franchises
include the Tony Hawk skateboarding games, the Call of Duty war game series
and one of the industry's current best sellers, Guitar Hero, which allows
players to strum along on a plastic guitar to tunes played on the
television.
Vivendi's strength is in online multiplayer games, such as World of
Warcraft, which has more than nine million players worldwide.
The two companies said that their combined revenue for the 2007 calendar
year would be $3.8 billion. The new entity will surpass Electronic Arts,
with annual revenue of about $3 billion, as the largest video game publisher
in the world that is not affiliated with a console maker, like Microsoft or
Nintendo . The two companies said they expected operating income for the new
company of $1.1 billion, or $1.20 a share, in the 2009 calendar year and
also said it would have the highest profit margins in the industry.
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