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Vivendi, Activision form Activision Blizzard

Indiantelevision.com Team

(11 July 2008 2:00 pm)

MUMBAI: Vivendi’s game unit and Activision have completed the transaction to create Activision Blizzard, the biggest pure-play online and console game publisher.

Activision Blizzard is formed by combining Activision, the independent publishers of interactive entertainment, and Vivendi Games, Vivendi's interactive entertainment business, that includes Blizzard Entertainment's World of Warcraft. Activision Blizzard will continue to operate as a public company under the ticker ATVI.

Vivendi CEO Jean-Bernard Levy said, "We have created the world leader in online and console games with this transaction and the combined strengths of the two businesses offer immense growth potential. With the new leadership team in place, the new entity is perfectly positioned to take advantage of these rapidly developing markets across the globe."

Activision Blizzard chairman Rene Penisson added: "We are excited about the opportunity for Activision Blizzard to create a broader entertainment software platform. We are leaders across North America and Europe and are creating a substantial footprint in the rapidly growing Asian market. We are determined to 'think big'."

Under the terms of the agreement, Vivendi Games merged with a wholly owned subsidiary of Activision and shares of Vivendi Games were converted into approximately 295.3 million new shares of Activision common stock. Vivendi’s ownership stake in Activision Blizzard is approximately 52 per cent on a fully diluted basis and approximately 54 per cent of shares outstanding.

If the tender offer were fully subscribed, Vivendi would own an approximate 68 per cent stake in Activision Blizzard on a fully diluted basis.

Activision Blizzard's portfolio includes best-selling video games such as ‘Guitar Hero’, ‘Call of Duty’, ‘Tony Hawk’, ‘Spider-Man’, ‘X-Men’, ‘Shrek’, ‘James Bond’ and ‘Transformers’, franchises such as ‘Crash Bandicoot’ and ‘Spyro’ and Blizzard Entertainment's ‘StarCraft’, ‘Diablo’, and ‘Warcraft’ franchises including the global subscription-based multi-player online role-playing game – ‘World Of Warcraft’.