Activision merge with Vivendi

FortheloveofgodFortheloveofgod Unsigned
edited July 2008 in Less Rokk More Talk
Activision Blizzard deal valued at $18.9 billion

Activision and Vivendi Games are to merge, becoming the world's largest independent videogame publisher, in a deal valued at USD 18.9 billion

The new company, Activision Blizzard, now boasts a portfolio bursting with some of the top-selling videogame franchises including Blizzard's World of Warcraft, Starcraft and Diablo, Vivendi's Crash Bandicoot and Spyro and Activision's Guitar Hero, Call of Duty and the Tony Hawk series.

Activision shareholders are to receive USD 27.50 a share, a 24 per cent premium over Friday's close of USD 22.15. Vivendi Games will contribute USD 1.7 billion in cash to the company and take a 52 per cent stake.

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

"The combined strength of the existing management teams at both companies will set the stage for further profitable growth of Activision Blizzard.

"We look forward to being an active and supportive majority stockholder in a company that is poised to lead the worldwide interactive entertainment industry in the years ahead," he said.

Shares of Vivendi Games will be converted into 295.3 million new shares of Activision, which values Vivendi Games at USD 8.1 billion. Vivendi will also purchase 62.9 million newly issued shares in Activision for USD 1.7 billion in cash.

"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," commented Robert Kotick, CEO of Activision.

"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," he added.

Kotick will remain as chief executive of Activision Blizzard, while Vivendi Games boss Bruce Hack will become vice chairman and chief corporate officer. He will also lead the merger, expected to be compete in the first half of 2008.

Activision also said that it will now have access to Universal Music Group, the world's largest music company, "which will benefit Guitar Hero and further extend our sizeable leadership position in music-based games."
The last part is good for GH.

Competiton is always good.:D

Comments

  • Julio_No_MasJulio_No_Mas Opening Act
    edited December 2007
    Wow Universal owns a ****load of labels. 0_0

    Limp Bizkit, Tupac, 50 Cent, Bryan Adams, AFI, The All-American Rejects, Black Eyed Peas, Mary J. Blige, Keyshia Cole, Sheryl Crow, Dr. Dre, Eminem, Fergie, Nelly Furtado, Guns N' Roses, Enrique Iglesias, Marilyn Manson, Maroon 5, Weezer, Pussycat Dolls, Ashlee Simpson, No Doubt, Gwen Stefani, Timbaland, Sting, Bon Jovi, Sugababes], Jay-Z, Kanye West, Nas, LL Cool J, Def Leppard, The Killers, Ne-Yo, Fall Out Boy, The Rocket Summer, Melissa Etheridge, Hoobastank, Mariah Carey, Janet Jackson, Jagged Edge, Lionel Richie, Sum 41, Rihanna, Babyface, Utada, The Mighty Mighty Bosstones, Saliva, Helloween, Journey, Jane's Addiction, Robert Plant, Neil Young, The Mars Volta, the Eagles, the Velvet Underground, and Frank Zappa.

    All of them. 0_0
  • sumboxcar182sumboxcar182 Opening Act
    edited December 2007
    i'm really hoping that those don't become gh exclusive and that activision doesn't have to pay any money for them. that would mean no more the who, the strokes, QOTSA. and no possibility for so many more artists :(
  • battle_axe_of_doombattle_axe_of_doom Road Warrior
    edited December 2007
    welp frank zappa automatically makes gh better than rock band
  • FortheloveofgodFortheloveofgod Unsigned
    edited December 2007
    Julio_No_Mas;164415 said:
    Wow Universal owns a ****load of labels. 0_0

    Limp Bizkit, Tupac, 50 Cent, Bryan Adams, AFI, The All-American Rejects, Black Eyed Peas, Mary J. Blige, Keyshia Cole, Sheryl Crow, Dr. Dre, Eminem, Fergie, Nelly Furtado, Guns N' Roses, Enrique Iglesias, Marilyn Manson, Maroon 5, Weezer, Pussycat Dolls, Ashlee Simpson, No Doubt, Gwen Stefani, Timbaland, Sting, Bon Jovi, Sugababes], Jay-Z, Kanye West, Nas, LL Cool J, Def Leppard, The Killers, Ne-Yo, Fall Out Boy, The Rocket Summer, Melissa Etheridge, Hoobastank, Mariah Carey, Janet Jackson, Jagged Edge, Lionel Richie, Sum 41, Rihanna, Babyface, Utada, The Mighty Mighty Bosstones, Saliva, Helloween, Journey, Jane's Addiction, Robert Plant, Neil Young, The Mars Volta, the Eagles, the Velvet Underground, and Frank Zappa.

    All of them. 0_0
    Aerosmith aswell.
  • QuinarvyQuinarvy Road Warrior
    edited December 2007
    "EMI Music Publishing and Warner/Chappell Music are allowing "unrivaled access to their catalogues of incredible songs". These mega-publishers house labels including EMI Music, Hollywood Records, Sony BMG Music Entertainment, Universal Music Group's Universal Music Enterprises and Warner Music Group's Rhino Entertainment, which have all agreed to supply master recordings by their artists for use in the game."

    I don't think we have anything to worry about for one reason...I doubt "agreeing" didn't involve any paper work.

    But really, Warner is still untouched, and by extension, Atlantic.
  • Julio_No_MasJulio_No_Mas Opening Act
    edited December 2007
    Fortheloveofgod;164616 said:
    Aerosmith aswell.
    http://new.umusic.com/Artists.aspx?Index=0

    And Jimi Hendrix.
  • Eman311Eman311 Road Warrior
    edited December 2007
    It's not like they said they locked up those labels exclusively.

    It's kind of a trick, because I'm sure they were in discussion with these same labels before this merger.
  • QuinarvyQuinarvy Road Warrior
    edited December 2007
    We also must take into account who owns Harmonix and publishes Rock Band...MTV.

    Universal Music Group: Rock Band is denied our tracks, we will only give tracks to Guitar Hero.

    MTV: Fine, no more Kanye, Fall Out Boy, Jay-Z, Killers, Maroon 5, etc. on MTV.

    Universal Music Group: Um, did we say no tracks for Rock Band??? We meant we'll give you what you want!
  • Black_HeavenBlack_Heaven Opening Act
    edited December 2007
    I don't see it being a lock down for one reason, money.

    And last I checked music compaines love the stuff and generally don't care who it comes from.
  • Phrank-EPhrank-E Opening Act
    edited December 2007
    I concur. The music industry is one huge beast and cannot allow tribal lines to be drawn is such a childish manner. They have to leave avenues open at all times.
  • CredgeCredge Opening Act
    edited December 2007
    The issue shouldn't be about what kind of music the games can get. It should be about the quality of Blizzard games. Being called Activision Blizzard is making me very weary, much like EA Mythic.

    Why on Earth would I want World of Pro Skating, which would consist of colorfully dull landscapes that you skate around in. You'd literally grind to gain XP. How lame.
  • edited December 2007
    I could see the new conglomerate (Acti-Lizzard? Blizza-Vision?) locking out it's music library from a perceived competitor. It would only strengthen the position of its in-house franchise.

    Perhaps I'm being overly pessimistic, but I see no good coming from this. Blizzard is the antithesis of what Activision is all about. They slowly push out top-quality titles while Activision rubber stamps lukewarm sequals like hotcakes.
  • Eman311Eman311 Road Warrior
    edited December 2007
    Apples;165324 said:
    I could see the new conglomerate (Acti-Lizzard? Blizza-Vision?) locking out it's music library from a perceived competitor. It would only strengthen the position of its in-house franchise.

    Perhaps I'm being overly pessimistic, but I see no good coming from this. Blizzard is the antithesis of what Activision is all about. They slowly push out top-quality titles while Activision rubber stamps lukewarm sequals like hotcakes.
    well at least it's vivendi who gobbled up activision with their WoW cash cow, and the other way around.
  • EmoDaisyEmoDaisy Unsigned
    edited July 2008
    Holy ****, I love about half of those artists, If they're only a GH exclusive songs...I'll totally go on a killing spree. ESPECIALLY NELLY FURTADO AND FERGIE!!! XD
  • onduvalstonduvalst Road Warrior
    edited July 2008
    Activision can't force them to be exclusive. They may be on that label, but most artist control what happens with their music. If activision get pissy with them they could always jump ship to another label like Prince did.
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