Vivendi is to merge its gaming division with Activision, the two companies have announced.
So Reuters.com is reporting, the two companies have agreed a GBP4.79 million deal that will see Vivendi’s games wing merge with American publisher Activision under the new moniker of Activision Blizzard, with Vivendi holding a 52 per cent stake in the new company.
The impact of this merger is not to be underestimated. According to Reuters, the new company is valued at USD18.9 billion (GBP 9.2 billion), with annual revenue set to be around USD 3.8 billion (GBP 1.85 billion). Which, according to Wedbush Morgan analyst Morgan Pachter, “turns Activision into an EA-like company”.
It’s not hard to see why, either: Activision’s stable already includes such major franchises as Tony Hawk, Guitar Hero and Call of Duty, while Vivendi owns Blizzard Entertainment, developer of the hugely successful PC MMORPG, World of Warcraft.
The games industry has been undergoing a period of consolidation of late, none more so than Activision, which announced that it had purchased highly rated British development studio Bizarre Creations (of Project Gotham Racing and The Club fame) in September to diversify its software portfolio.
But while this comes as a big surprise, it now means that EA is no longer the only big dog on the block. Is this a good or a bad thing? Let us know what you think below.
