Vivendi, Activision Form Games Juggernaut2009-09-17Jean-Bernard Lévy and Robert Kotick have had a busy holiday season. On Dec. 2, Lévy, the chief executive of Vivendi (VIV.PA), and Kotick, the CEO of Activision (ATVI), announced an $18.9 billion deal that will create the world's largest independent video game publisher and a fierce competitor to the longtime industry leader, $3 billion Electronic Arts (ERTS). The deal combines Activision, a $1.5 billion maker of the top-selling Guitar Hero, Call of Duty, and Tony Hawk franchises, with Vivendi Games, whose Blizzard Entertainment unit has a huge hit with World of Warcraft. The online fantasy game has 9.3 million members paying monthly subscription fees to play.
Under the terms of the proposed merger, the $29 billion Paris-based entertainment and telecom conglomerate will exchange its Vivendi Games and $1.7 billion in cash for a 52% stake in the new company, which will be called Activision Blizzard. Within four days of that transaction, the new company will make a tender offer for $4 billion worth of Activision shares at $27.50 per share, a 24% premium on the closing price Nov. 30. BusinessWeek.com's Christopher Palmeri spoke with Kotick, who'll continue to be Activision Blizzard's CEO, and Lévy on the day they announced the merger.
Can each of you describe your reason for this deal?
Lévy: We're very committed to games. We're going to continue to invest in what's the fastest-growing segment in the entertainment industry. This gives us the financial flexibility to grow the asset. Blizzard was a bit hit, but its value was sort of hidden. As a listed company o...
European Spore release date announced2009-09-03One of the most highly anticipated PC games of all time, Will Wright’s Spore, will be released in Europe on September 5th – and the shock news is that the DS incarnation will arrive alongside the PC and Mac releases.
Also surprising is the fact that European gamers will be able to get their hands on the game two days earlier than their North American cousins...