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Activision + Vivendi Games = Activision Blizzard. Good or bad?
Lionexx
Member UncommonPosts: 680
http://games.ign.com/articles/839/839004p1.html
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December 2, 2007 - Today Activision and Vivendi Games announced they have signed an agreement to combine forces and operate under the new company name Activision Blizzard. In a move that makes Activision Blizzard the world's largest online and console game publisher, the newly formed company will have access to $3.8 billion in annual revenue for 2007. As is evident under the new name, Blizzard, creators of the world's most popular MMORPG -- World of Warcraft -- will take a prominent position in the new company.
Under the terms of the deal, Vivendi Games will be merged with Activision, with shares of the publicly traded Vivendi Games converted to shares of Activision common stock at a transaction price of $27.50 per share. Vivendi also agrees to purchase 62.9 million newly issued Activision shares at the price of $27.50 per share, which is the equivalent of $1.7 billion in cash. This means Vivendi will take a 52% ownership stake in the newly formed Activision Blizzard, which will continue to be traded under the symbol ATVI on the NASDAQ index.
The terms of the deal will see current Activision CEO Robert Kotick as head of the new company, with Bruce Hack, Vivendi's current CEO, to serve as Vice-Chairman and Chief Corporate Officer of Activision Blizzard. Mike Morhaime will continue to serve as President and Chief Executive Officer of Blizzard Entertainment.
Robert Kotick had this to say about the pending merger: "This is an outstanding transaction for Activision and our stockholders, as well as a pivotal event in the continuing transformation of the interactive entertainment industry. By combining leaders in mass-market entertainment and subscription-based online games, Activision Blizzard will be the only publisher with leading market positions across all categories of the rapidly growing interactive entertainment software industry and reach the broadest possible audiences. By joining forces with Vivendi Games, we will become the immediate leader in the highly profitable online games business and gain a large footprint in the rapidly growing Asian markets, including China and Korea, while maintaining our leading operating performance across North America and Europe. Activision stockholders will benefit from significantly increased earnings power and the recurring nature and predictability of subscription-based revenues, while also having the opportunity, if they choose, to receive $27.50 per share for a portion of their shares in the post-closing tender offer."
Kotick continued: "Vivendi Games provides Activision with unique strategic and financial benefits and will allow us to leverage our franchises into emerging online opportunities as Blizzard has done so successfully. Activision has been very focused on margin expansion, and this transaction will meaningfully increase our overall operating margins as we expand our franchises online and in new geographies. Diversifying our revenue base among subscription-based online, console and PC formats, as well as wireless and casual emerging opportunities, gives us the broadest platform to capitalize on industry growth. With Blizzard's successful franchises, such as World of Warcraft, StarCraft and an exciting pipeline of yet-to-be announced titles, Vivendi Games' and Blizzard's management team will join with Activision's strong and experienced leaders to become an even more powerful force for innovation in online and offline interactive entertainment across a wide range of platforms. This transaction also provides a unique relationship with Universal Music Group - the world's largest music company - which will benefit Guitar Hero and further extend our sizable leadership position in music-based games."
Mike Morhaime added: "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. 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. 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."
While the merger has yet to be officially approved by Activision's stockholders, the boards of directors of Vivendi, Vivendi Games, and Activision have already accepted the deal.
Playing: Everthing
Played: DAoC,AC2,EvE,SWG,WAR,MXO,CoX,EQ2,L2,LOTRO,SB,UO,WoW.
I have played every MMO that has ever come out.
Comments
All that is left is for MS to join forces with Intl and Nv and we'll be forever screwed.
I voted bad.
I hope I'm going to be wrong but doubt it. When games companies get bigger it appears to me that game design and creativity take a back seat and profit becomes the sole motive. You just have to look at the big named publishers to see how much crap they push onto the market or rehashes of old games with updated graphics. Once a big publisher has found a good profit making formula they milk it for all it's worth.
Isn't there supposed to be some sort of law against Monopolies?
I'm sure we've got a long way, but many of these small development companies don't really seem to be producing games that everyone would like to play...
*sigh* Methinks it all started with EA acquiring Mythic.
Their is just 1 more thing and the gaming comunity will be screawed over for life.
EA Merging with Microsoft games and Activision Blizzard.
Playing: Everthing
Played: DAoC,AC2,EvE,SWG,WAR,MXO,CoX,EQ2,L2,LOTRO,SB,UO,WoW.
I have played every MMO that has ever come out.
Im thinking bad.
With all my heart I hope it will be good, since if done right this company will be the future of gaming. My reluctance to accept this new company though is because I feel it will wash away some of Blizzard's quality. They have never in their history released a game that didnt greatly suprass my expectations. Now, with some new management under the roof will Blizzard have to start rushing products more, or start to develop different genres (World of Guitar Hero? Anyone? ).
I dont know it will be good... you know Blizzard always delay games to make them perfect, if somone will want earn more money, Blizz might forget about Policy "Good game or none" for Lucas Arts Policy "No mather that game is not yet finish, we giving it to player cose we want $$$$"
But there is also Bright side
maybe Activision games become so good as D2 and W3 :P
Future will tell us what will happen.
that is Sony(SoE) policy not Lucas arts
Playing: Everthing
Played: DAoC,AC2,EvE,SWG,WAR,MXO,CoX,EQ2,L2,LOTRO,SB,UO,WoW.
I have played every MMO that has ever come out.
Oh Boy!
Look what happenes when Utility Companies or Cell Phone Companies merged.. Resulting in "what was once great, no longer stays that way!!"
They always say, it is for the betterment of all - Ha! It is nothing but them going for the Big Buck BANG
Not real thrilled about this announcement.
"Huntress"
It's not illegal to be a monopoly, but it is illegal to use this monopoly to get an unfair advantage in other sectors (example Microsoft using their monopoly on the OS market to create unfair advantages in the browser, office, media player etc. markets).
And if I recall correctly Vivendi bought Blizzard long before EA acquired Mythic.
I maintain this List of Sandbox MMORPGs. Please post or send PM for corrections and suggestions.
True, but LA also doing such things! Rynember Knights of the Old Republic 2? They relase game with ending that is one of the most disapointing endings in History of Games. They also throwed away one planet (Droid Factory HK-50) becose it was not ready yet. So its also LA policy
What a genius name for the merge.. Activision (which is not even a word) blizzard.. Kudos to them, hope they fail.
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End of the game world is comming rushed games on a blueray 2 hours game play 100hours repetion and cloned rushed mmorpgs.
Price per game 100 euros plaese:P
Dont wanne buy our game for that price np you dont have much choice buy it or get some crap from small company made by amateurswith no budget:P
We own almost whole market so we set price capice.
Activision blizzard slogan make fast great dollars:P
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True, but LA also doing such things! Rynember Knights of the Old Republic 2? They relase game with ending that is one of the most disapointing endings in History of Games. They also throwed away one planet (Droid Factory HK-50) becose it was not ready yet. So its also LA policy
that only cause Bioware didn't make KOTOR 2.And again LA did not make KOTOR2, they Published it, Obsidian Entertainment made KOTOR2.
Playing: Everthing
Played: DAoC,AC2,EvE,SWG,WAR,MXO,CoX,EQ2,L2,LOTRO,SB,UO,WoW.
I have played every MMO that has ever come out.
Yes, but its the LA decied that work will be completed on time, I rynember interview with Obsidian members that was saying something like "We needed make game shorter becose LA has pushed us to complete game on time".
who cares they're both public companies.
Which Final Fantasy Character Are You?
if I were to kill a titan tomorrow and no CCP employees showed up to say grats I would petition it.
Waiting for: the next MMO that lets me make this macro
if hp < 30 then CastSpell("heal") SpellTargetUnit("player") else CastSpell("smite") end
All I want to know is why?
One or two more solid releases and Blizzard would have been big enough to buy out their parent company AND Activision, and not have to concede quality in order to do it. In my opinion, we're going to be seeing Blizzard's first crappy game in the near future, since the only Activision games worth a damn are the Guitar Hero series, The Movies and possibly Call of Duty, though that last one doesn't sit well with me personally.
I can't for the life of me think of a merger that has actually improved the end result, the closest that comes to mind is Square-Enix. Although they haven't improved as much as remained relatively static in their game quality.
My blog:
http://www.mmorpg.com/blogs/Strayfe/
Activivsion has great games what you smoking
Playing: Everthing
Played: DAoC,AC2,EvE,SWG,WAR,MXO,CoX,EQ2,L2,LOTRO,SB,UO,WoW.
I have played every MMO that has ever come out.
It seems you're not really aware of how big Vivendi is to make such a statement. Just to give you an idea in 2006 Vivendi games (owner of Blizzard) made a profit of € 115 million. Sure, that's a nice pile of cash to have but that amount is next to nothing compared to the profit of the whole Vivendi group that comes to a whopping € 4.370 million ...Numbers are from Vivendi's 2006 Annual report to be found here: www.vivendi.com/corp/en/regulated_information/financial_reports-index.php
I maintain this List of Sandbox MMORPGs. Please post or send PM for corrections and suggestions.
It seems you're not really aware of how big Vivendi is to make such a statement. Just to give you an idea in 2006 Vivendi games (owner of Blizzard) made a profit of € 115 million. Sure, that's a nice pile of cash to have but that amount is next to nothing compared to the profit of the whole Vivendi group that comes to a whopping € 4.370 million ...Numbers are from Vivendi's 2006 Annual report to be found here: www.vivendi.com/corp/en/regulated_information/financial_reports-index.php
Not to mention Blizzard's profits are Vivendi's profits since it's wholly owned by Vivendi (at least it was... apparently now they'll own a majority share in Activision Blizzard).
The only downside to this situation that I can foresee is the use of the name "Activision Blizzard". It's just stupid...it sounds stupid, it looks stupid, and it is stupid.
The merge is in name and assets only. Blizzard Entertainment will still be autonomous. Vivendi owns Blizzard and now owns the majority of Activision, all their doing is legally combining their two baskets under one organization. Blizzard and Activision aren't actually melding into one beast.
Companies do this kind of thing all the time. A recent example was the merge between BioWare and Pandemic. For all appearances they were completely autonomous from each other, they just happened to be owned by the same company, and that company decided to combine them on paper.
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Life sucks, buy a helmet.
Ultimately, as long as Activision keeps their hands off Starcraft 2, I could care less what sort of politics they all play at. I keep forgetting about Vivendi's other holdings. I've made that mistake before, I should probably remember it this time.
My blog:
http://www.mmorpg.com/blogs/Strayfe/
There's only one downside to this, and that's the "Activision Blizzard" name, everything else is just shiny!
I guess we will find out pretty soon.
Playing: Everthing
Played: DAoC,AC2,EvE,SWG,WAR,MXO,CoX,EQ2,L2,LOTRO,SB,UO,WoW.
I have played every MMO that has ever come out.
Agreed..... Activision + Blizzard = Actard.....
There....all fixed.. name much more befitting the franchise
"True friends stab you in the front." | Oscar Wilde
"I need to finish" - Christian Wolff: The Accountant
Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm
Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV
Don't just play games, inhabit virtual worlds™
"This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon
Agreed..... Activision + Blizzard = Actard.....
There....all fixed.. name much more befitting the franchise
Actard is not shiny, it's dirty and foul!
look other then all the negatives i think the positives are higher..
for one the more income into one company, the more money will be spent on games, blizzard is and has always been about profits but they have always delivered good games, as long as they deliver good games i have no problem with it