Video game giants in $18bn merger

[Pchan 5,162]

http://news.bbc.co.uk/2/hi/technology/7123582.stm

The companies behind Call of Duty and World of Warcraft are merging in a deal which could shake up the global video games industry.

Activision and Blizzard have said they will form "the world's most profitable games business" in a deal worth $18.8bn (£9.15bn).

US-based Activision also makes hit console games such as the Tony Hawk series and Guitar Hero. Nine million people pay a monthly subscription to play World of Warcraft.

'High-growth industry'

Blizzard is the biggest player in online gaming and World of Warcraft is the global market leader of what are known as massively multi-player online role-playing games, or MMORPGs.

It is currently owned by the French media group Vivendi.

As part of the merger plan, Blizzard will invest $2bn in the new company, while Activision is putting up $1bn.

The merged business will be called Activision Blizzard and its chief executive will be Activision's current CEO Bobby Kotick. Vivendi will be the biggest shareholder in the group.

Jean-Bernard Levy, Vivendi chief executive, said: "This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector.

"By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry."

Different strengths

The two firms are hoping that their different strengths will combine to form a business which is powerful on every gaming platform and in every territory.

Blizzard is strong in Asia, where its Starcraft series has proved hugely popular.

Starcraft, a strategy game first released in 1998, is played by millions of South Koreans in gaming cyber-cafes, and by professional gamers on television.

Activision has developed a presence on all three new generation game consoles - Microsoft's Xbox 360, Sony's PlayStation 3 and the Nintendo Wii - with franchises such as Spider-Man and X-Men.

The games software industry has been through turbulent years, with companies changing ownership and going in and out of business in rapid succession.

Activision was formed in 1979 and went through bankruptcy and a series of alliances and mergers before becoming successful.

Blizzard had been through a number of owners before ending up in the hands of Vivendi in 1998.

[Strider Hiryu 2,704]

I'm still debating whether or not this was a good move for the companies (much like how Bioware was bought out by EA). We'll just have to wait and see though if this continues my future job prospects are looking slimmer.

[Sledgstone 8,672]

I just hope this helps blizzard more than it could hinder it.

[Kite 3,263]

they beter now fuck up WoW

and bioware was bought out, there go's the only star wars game makers that wereworth the time of day

[DeathscytheX 9,732]

They are both companies that have been on the decline the past few generations. Maybe something good will come out of it.

[Kite 3,263]

They are both companies that have been on the decline the past few generations. Maybe something good will come out of it.

how would you say bliz is on the decline.

warcraft 3 was the best rts of the year, and frozen throne won best expansion of the year. and WoW is the best MMo ever

if you have any info i dont know please share ^^

[Mathias 426]

Don't forget the long anticipating Starcraft sequel is about to release!

[DeathscytheX 9,732]

how would you say bliz is on the decline.

warcraft 3 was the best rts of the year, and frozen throne won best expansion of the year. and WoW is the best MMo ever

if you have any info i dont know please share ^^

Exactly how long did it take for Warcraft III to come out after II? StarCraft Ghost debacle anyone? Yes WCIII is a great game, but what else does Blizzard have to Offer? Diablo III has been a rumor for years, but Blizzard has nothing to show for it. StarCraft comes out once a decade it seems. They obviously have problems either with game directing or financial issues. That being said, the Graphics for Warcraft are less than spectacular which i found very disappointing when i first booted up WCIII. Graphics aren't everything I know, but still it is definitely not the most beautiful game out there. I'd expect more, especially since it seems to put about the same amount of strain on my processor as Half-Life 2 does.

Activision's has more to do with the quality of its games as a whole. GH III is about the best thing they've had since Mechwarrior got canned. (thats sarcastic, but almost true sadly)

[Dogmatix 735]

Idk. Hopefully it's been that Blizzard will actually get more games out.

[Kite 3,263]

they make £81 million a year on warcraft alone. ($160m)

dont blame em for being lazy on making new games

[DeathscytheX 9,732]

Those figures are from World of Warcraft. Not Warcraft. They were making no where near that off all of their games combined. I never said they were lazy either.