In a surprising and wholly unexpected Sunday announcement, Blizzard Entertainment owner Vivendi Games announced that it will be merging its assets and studios with those of Activision.
Once the merger is complete, Activision will be known as Activision Blizzard, with Vivendi Games operating as a wholly owned subsidiary. The new company is said to have "the highest operating margins of any major third-party video game publisher," with an estimated $3.8 billion in "pro forma combined calendar 2007 revenues."
Former Vivendi Games parent company Vivendi will hold a majority stake, approximately 52%, of Activision Blizzard. Vivendi-designated representatives will also occupy a majority of the new company's board of directors. The board will consist of 11 members: 6 appointed by Vivendi, 2 from Activision, and 3 independent directors who currently serve on Acitivsion's board.
According to the press release, Vivendi Games is currently worth $8.1 billion, and Vivendi is pouring an addition $1.7 billion of cash into the transaction. In all, the deal is said to be valued at $18.9 billion.
"Blizzard's industry-leading PC games business, with a track record of nine consecutive bestsellers and a global subscriber base of more than 9.3 million World of Warcraft players, is an exceptional fit for Activision's highly profitable console games business," said Blizzard president and CEO Mike Morhaime.
"From our interactions with the Activision team, it is clear we have much in common in terms of our approaches to game development and publishing," Morhaime continued. "Above all, we are looking forward to continue creating great games for Blizzard gamers around the world, and we believe this new partnership will help us to do that even better than before."
Once the merger is complete, Activision will be known as Activision Blizzard, with Vivendi Games operating as a wholly owned subsidiary. The new company is said to have "the highest operating margins of any major third-party video game publisher," with an estimated $3.8 billion in "pro forma combined calendar 2007 revenues."
Former Vivendi Games parent company Vivendi will hold a majority stake, approximately 52%, of Activision Blizzard. Vivendi-designated representatives will also occupy a majority of the new company's board of directors. The board will consist of 11 members: 6 appointed by Vivendi, 2 from Activision, and 3 independent directors who currently serve on Acitivsion's board.
According to the press release, Vivendi Games is currently worth $8.1 billion, and Vivendi is pouring an addition $1.7 billion of cash into the transaction. In all, the deal is said to be valued at $18.9 billion.
"Blizzard's industry-leading PC games business, with a track record of nine consecutive bestsellers and a global subscriber base of more than 9.3 million World of Warcraft players, is an exceptional fit for Activision's highly profitable console games business," said Blizzard president and CEO Mike Morhaime.
"From our interactions with the Activision team, it is clear we have much in common in terms of our approaches to game development and publishing," Morhaime continued. "Above all, we are looking forward to continue creating great games for Blizzard gamers around the world, and we believe this new partnership will help us to do that even better than before."
Activision Blizzard FAQ
Q: What are the details of the deal?
A: Under the terms of an agreement with Vivendi, Blizzard and the other companies that make up Vivendi Games will combine with Activision to form a new public company called Activision Blizzard. We do not anticipate any difference in Blizzard’s operations as a result of the combination. Joining forces with Activision will create a stronger and more diversified company that we anticipate will benefit and strengthen both brands.
Q: What will happen to the Blizzard brand name?
A: The Blizzard brand name will stay the same as it’s always been: Blizzard Entertainment, Inc.
Q: What will change with regard to the day-to-day operations at Blizzard?
A: There will be no changes in the way Blizzard operates. All of the people, processes, and philosophies that have made Blizzard so successful will be preserved. Blizzard will benefit from all-star sales and distribution teams to service our products. In addition, the combined company will be stronger financially, managerially, and operationally.
Q: How will this impact Blizzard’s games?
A: This will not impact Blizzard’s games. We remain committed to providing the same high-quality game content and support that we always have. Development on Wrath of the Lich King and StarCraft II, as well as on our unannounced games, is continuing as normal.
Q: Will there be any visible differences in Blizzard’s logo or packaging/marketing materials as a result of this deal?
A: No, there won’t be any changes to our company name, logo, packaging/marketing materials, or anything else along those lines.
Q: Will there be any management changes at Blizzard as a result of this deal?
A: No, there won’t be any management changes at Blizzard as a result of the combination.
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.
Q: Will the release schedules for any Blizzard games be impacted?
A: No, the transaction will not have any impact on our games, our day-to-day operations, or our release timelines.
Q: Will any of Blizzard’s offices close as a result of the deal? Or, will any new offices open?
A: No, all of our offices will continue to function as they have, and we don’t foresee the need to open any new offices for the time being.
Q: Will any employees move to different offices as a result of the deal?
A: We don’t anticipate making any such moves as a result of the deal.
Q: Does this deal include Activision’s and Blizzard’s international offices?
A: Yes, every part of our companies in the U.S. and abroad is involved in this deal.
Q: If Activision Blizzard is a public company, does that mean I’ll now be able to buy stock in Blizzard?
A: Activision will be renamed Activision Blizzard, Inc and will continue to be a publicly listed company traded on NASDAQ. You will be able to buy stock in the combined company.
Q: When will the transaction be complete?
A: The transaction is subject to approval of Activision shareholders, customary closing conditions, and regulatory approvals. Pending approval, the companies expect the transaction to be completed by mid 2008.
A: The Blizzard brand name will stay the same as it’s always been: Blizzard Entertainment, Inc.
Q: What will change with regard to the day-to-day operations at Blizzard?
A: There will be no changes in the way Blizzard operates. All of the people, processes, and philosophies that have made Blizzard so successful will be preserved. Blizzard will benefit from all-star sales and distribution teams to service our products. In addition, the combined company will be stronger financially, managerially, and operationally.
Q: How will this impact Blizzard’s games?
A: This will not impact Blizzard’s games. We remain committed to providing the same high-quality game content and support that we always have. Development on Wrath of the Lich King and StarCraft II, as well as on our unannounced games, is continuing as normal.
Q: Will there be any visible differences in Blizzard’s logo or packaging/marketing materials as a result of this deal?
A: No, there won’t be any changes to our company name, logo, packaging/marketing materials, or anything else along those lines.
Q: Will there be any management changes at Blizzard as a result of this deal?
A: No, there won’t be any management changes at Blizzard as a result of the combination.
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.
Q: Will the release schedules for any Blizzard games be impacted?
A: No, the transaction will not have any impact on our games, our day-to-day operations, or our release timelines.
Q: Will any of Blizzard’s offices close as a result of the deal? Or, will any new offices open?
A: No, all of our offices will continue to function as they have, and we don’t foresee the need to open any new offices for the time being.
Q: Will any employees move to different offices as a result of the deal?
A: We don’t anticipate making any such moves as a result of the deal.
Q: Does this deal include Activision’s and Blizzard’s international offices?
A: Yes, every part of our companies in the U.S. and abroad is involved in this deal.
Q: If Activision Blizzard is a public company, does that mean I’ll now be able to buy stock in Blizzard?
A: Activision will be renamed Activision Blizzard, Inc and will continue to be a publicly listed company traded on NASDAQ. You will be able to buy stock in the combined company.
Q: When will the transaction be complete?
A: The transaction is subject to approval of Activision shareholders, customary closing conditions, and regulatory approvals. Pending approval, the companies expect the transaction to be completed by mid 2008.
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