Blizzard and Activision Announce $18.8bn Merger
Ebon Praetor writes "The BBC reports that Blizzard and Activision have announced an $18.8bn merger. Activision's CEO, Bobby Kotick, will become the head of the joint company, while Vivendi, Blizzard's current parent company, will become the largest single investor in the new group. Even with the size of the merger, the combined company will still be smaller than the industry giant EA. '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 ... Vivendi will be the biggest shareholder in the group.'"
Not too often the summary itself IS the dupe...
How is the WoW community going to take it?
... alot.
I think it really matters whether the game developers are going to be replaced by Activision or not, as a decrease in quality might spark some anger.
Especially since their number of players are
Both companies do little else other than release sequel after sequel for once popular series. Most of their original titles were released in the 90s.
I can't wait to start buying their games and various swag -- all emblazoned with the new Blactavision logos!
World of Command and Conquer?
"Live as if you'll die tomorrow." Ridiculous. You could die later today.
Provides some details. From their front page:
I screamed.
How long until I can play some crazy rhythm-based RTS with my guitar hero controller?
Why are the amounts quoted in Barbadian dollars?
As long as Starcraft 2 is still going to be released, this is fine with me.
No one makes games with great replay value like Blizzard does. Blizzard's strategy of not releasing a game until its ready is almost unheard of in this industry. I seriously hope that the new overlords don't mess with this - I'd hate to stop benefiting from Blizzard's good work.
So, does anyone know who's going to be put in charge of the new company? And what about Vivendi? I thought they owned part of Blizzard. Any word on them?
This guy's the limit!
Innovation, imagination etc. All that will be left is "The Sure Thing".
Deleted
I have always liked Activision as a game company since Battlezone. I enjoy playing their games quite a lot and I have the distinct feeling that Blizzard will remain the same as always (one of, if not the best pc game house) and this stands to help further Activision and develop them as a higher quality company.
I'm very excited about this and think we will only see the PC industry be enhanced by such a merger. With Blizzards track record of releasing quality games when they feel they are ready, this model could easily translate to Activision and enhance their final products. I feel there maybe a trend of quality in the future of PC Gaming. When people look at Blizz, their profit margin on games, and the fact they rarely release them in time for the particular holiday season that corporate companies would force the game out... I think companies will realize, especially in the PC market, we want finished products, not products ready to be delivered under the Christmas Tree or released at the appropriate timing with the fiscal quarter or year, etc.
It's not Blizzard that is merging: They've been part of Vivendi universal for years. Their parent company has many developers other developers outside of Blizzard. WoW is their cash cow though.
That said, it doesn't seem like their different developer studios have a lot of synergy though: The end result is a company that has very diverse offerings, and will be difficult to market as a single entity. It's not like either company needed the other for stability purposes though: Both WoW and Guitar Hero are the kind of franchises that allow a company to have a nice R&D budget and take risks with new franchises.
So I guess the merger will just mean they'll be able to push retailers around more easily, and make their revenue even more predictable.
I for one would like to welcome our new gaming overlords. Some of the forums I visited listed this, but I figured it was a farce until I saw it here, now, I may go back to bed. Most of the gaming devs in various other games and genres would learn alot of blizzard. I loathe playing pay to play beta's for half finished games. Not that the release of WoW was not a pay to play beta. EA on the other hand, doesnt seem to care for their customers concerns, and just releases the games any way. World of Duty, Call of Warcraft. Me, I wanna play Medal of Homer.
~DF
a chance for a classic to be reborn!
world of pitfall anyone?
Call of Duty 5, Azeroth Edition-
"{crackle} SGT Hulka, bring up your platoon of Orcs and get a crossfire on those Dwarves STAT!"
No wonder their stock has been climbing lately. I have made so much money day-trading them. I guess it's time to go short now that all the sheeple will want some... I'll sell you some on Monday afternoon.
Seven puppies were harmed during the making of this post.
"Blactavision" makes me think of "Blacula". But silly as that (and my suggestion) sounds, it's better than "Activision Blizzard". What were they thinking? They may as well have called themselves "No Imagination Games Corp."
-Keeping Activision (on its own) would have been cool for the nostalgia factor.
-Keeping Blizzard (on its own) would have been cool for the currently-successful factor
-If they couldn't decide, they should have just gotten a new name altogether. Maybe they could have sold themselves as a bridge between the gaming industry and general media distributors and called themselves gPod. Or maybe Gune...
The CB App. What's your 20?
To make money.
"Activision's CEO, Bobby Kotick, will become the head of the joint company"
"its chief executive will be Activision's current CEO Bobby Kotick"
"Vivendi, Blizzard's current parent company, will become the largest single investor in the new group"
"Vivendi will be the biggest shareholder in the group"
Short stories work just as well. No need to repeat everything.
Put Blizzard employees in all management spots. Call me naive, but I think with them in charge it would keep a certain level of quality in the company that us fans like so much.
-FL
I wouldnt be surprised if this wasn't partly a way to realign the failing sierra games (also owned by Vivendi) and to rebrand it with more popular Activision/Blizzard logos.
Sure Activision wants to ride on the coattails of blizzard's quality reputation, and vivendi probably drools over activisions distribution channels and platforms, but Viv has to be re-orging some studios for this....and it ain't blizzard's.
Many news-sites are actually reporting this as a merger between Vivendi and Activision (perhaps more of a semantic distinction, but it does serve to remind that Blizzard is owned by someone, and is not an independant self-owned development studio, in the strictly on-paper sense).
:P
This is a fascinating move for one very important reason: EA. This merger combines a hugely profitable juggernaut of game-making (Blizzard) with what is probably the largest publisher out there (Activision). Electronic Arts suddenly got not only competition, but may have just dropped into second place, all in one fell swoop.
This is a great move for Blizzard: there is no other development company that is such a proven success, having long passed the point of "one hit wonder" or "a lucky run," and they now have access to, in light of how bankable they are, absolutely vast wodges of capital for their future plans. This is an awesome move for Activision: a publisher (with some developer in there too) that has quietly grown over the last decade to become one of the largest now has pretty much the ultimate triple-A development juggernaut at its core. This last bit is a key point, as it reflects EA. EA is large publisher wrapped around a large and important development house. Vivendi and Activision have now stepped up to that level and type of operation, and can be expected to give EA a run for its money.
What particularly pleases me is how this could be seen as providing a "good guys" team to stand against EA's often-percieved "bad guys" team, which should be an interesting public dynamic to watch
such as Activision Blizzard when you can download games for free? The Activision Blizzard merger is just making them more of a monopoly in the non-free areana so please download free games which are legal instead of supporting the conglomerates.
Activision Blizzard? That's the best name they could come up with?
If they wanted to depend on brand name recognition, they should have simply called themselves "The Creators of WOW & Call of Duty".
Blizzard has long been a 'Release it when its done' company--and the resulting products have almost always been very polished. Activision(at least in the past 15 years), has been willing to push crap out to market. With Activision's CEO taking over the merged company, can we expect anything -but- a quality drop in Blizzard's future products?
Whack a Catgirl: You know you want to!
I think this is the real news:
Vivendi, owner of the Universal Music Group -- world's largest music publisher, buys a controlling stake in Activision, maker of Guitar Hero -- the world's most popular music-based game franchise.
has a nice energy to it. I can only imagine how long the suits argued about the name of the new company.
..........FULL STOP.
I have been keeping an eye on the hiring page for Blizzard for awhile and they have been hiring for a "top secret" project(their words)for quite some time. http://www.blizzard.com/jobopp/
(Look on the upper right side of page)
I have been making potshot guesses regarding what they are up to.
This changes those guesses. It may boil down to simple licensing issues. Activison has something Blizzard needs and is willing to pay for it? A merger here would put a lot of those licensing issues out of the purview of most people, allowing them to do so without blowing their cover. Thats a wild guess though.
The thing that puzzles me the most is that ACTIVISIONS current CEO will be running the ship. Granted, that may have been a concession on the part of Vivendi, but it sure looks to me like Blizzard/Vivendi has the majority of the chips on the table. Which, again, leads me to believe that Vivendi wants something from Activision and that was the only way to get it.
/devil advocate
/devil advocate
Blizzard (or at least the worker there) as far as I can tell has always tried to not rush, and make sure all major bug are out before getting a title out. Which is how they got their reputation. But on a short term point of view, this is a loss for the share holder, since more money is spent whereas they could already release the title at an earlier point. So now blizzard get strengthened by activision dev cycle : rush everything out. Spend less money on title. Churn them quicker. Customer might lose a bit on the change, but share holder on the short term might not.
C. Sagan : A demon haunted world:
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visit randi.org
A FAQ has been posted on Blizzard's web site detailing the effects of this merger on Blizzard's development efforts. Pasted below: http://www.blizzard.com/press/activision-faq.shtml Q: What are the details of the deal? A: Under the terms of an agreement with Vivendi, Blizzard and the other companies that make up Vivendi Games will combine with Activision to form a new public company called Activision Blizzard. We do not anticipate any difference in Blizzard's operations as a result of the combination. Joining forces with Activision will create a stronger and more diversified company that we anticipate will benefit and strengthen both brands. Q: What will happen to the Blizzard brand name? A: The Blizzard brand name will stay the same as it's always been: Blizzard Entertainment, Inc. Q: What will change with regard to the day-to-day operations at Blizzard? A: There will be no changes in the way Blizzard operates. All of the people, processes, and philosophies that have made Blizzard so successful will be preserved. Blizzard will benefit from all-star sales and distribution teams to service our products. In addition, the combined company will be stronger financially, managerially, and operationally. Q: How will this impact Blizzard's games? A: This will not impact Blizzard's games. We remain committed to providing the same high-quality game content and support that we always have. Development on Wrath of the Lich King and StarCraft II, as well as on our unannounced games, is continuing as normal. Q: Will there be any visible differences in Blizzard's logo or packaging/marketing materials as a result of this deal? A: No, there won't be any changes to our company name, logo, packaging/marketing materials, or anything else along those lines. Q: Will there be any management changes at Blizzard as a result of this deal? A: No, there won't be any management changes at Blizzard as a result of the combination. Q: Will Activision and Blizzard now share development teams? A: No, both of our companies will continue to operate as they have previously with regard to game development. Q: Will the release schedules for any Blizzard games be impacted? A: No, the transaction will not have any impact on our games, our day-to-day operations, or our release timelines. Q: Will any of Blizzard's offices close as a result of the deal? Or, will any new offices open? A: No, all of our offices will continue to function as they have, and we don't foresee the need to open any new offices for the time being. Q: Will any employees move to different offices as a result of the deal? A: We don't anticipate making any such moves as a result of the deal. Q: Does this deal include Activision's and Blizzard's international offices? A: Yes, every part of our companies in the U.S. and abroad is involved in this deal. Q: If Activision Blizzard is a public company, does that mean I'll now be able to buy stock in Blizzard? A: Activision will be renamed Activision Blizzard, Inc and will continue to be a publicly listed company traded on NASDAQ. You will be able to buy stock in the combined company. Q: When will the transaction be complete? A: The transaction is subject to approval of Activision shareholders, customary closing conditions, and regulatory approvals. Pending approval, the companies expect the transaction to be completed by mid 2008.
It wasn't that long ago that $18.8 billion would have been a figure for the industry's total revenue. With all the mergers lately (this one coming just a short while after the Bioware/EA merger), I'm wondering when or if we're going to see some antitrust rumblings out of the Feds.
The story makes this Penny Arcade comic seem oddly prophetic.
http://www.penny-arcade.com/comic/2007/11/09
If Blizzard is doing something right its not uptime.
Most people who deliver online services like to measure their uptime in 'nines'.
Blizzard measure theirs in 'eights'.
In the free world the media isn't government run; the government is media run.
being a level 5 grand master haxx0r i have to agree with you.
As someone who mostly associates the name "Activision" with old titles, the first thing that popped in my head when I read this was... "Massively Multiplayer Pitfall!"
They say it'll be a buyer's market with the dollar tanking over the next year.
"Blizzard will invest $2bn worth of monthly WoW fees in the new company" fixed that for you
Dear Zonk,
You shouldn't repeat yourself in your summary, it makes the summary redundant. It's like when you say something twice and it becomes redundant.
"Women are just like ninjas; They lie even when it is more convenient to tell the truth." ~ Unknown
This moves Blizzard's earnings from Vivendi with its Price/Earnings ratio of 11 to Activision with a P/E of 45, effectively quadrupling the market value of Blizzard overnight.
Finally, I'll be able to stop playing WoW! It's so addictive now, but I'm sure Activision will somehow find a way to fuck it up so that it won't be fun, and I'll finally be able to quit.
Thanks, Activision! (Thactivision.)
"Destroy science and religion. Science would re-emerge exactly the same; but not religion." - Penn Jillette, paraphrased
So the tradition of keeping name recognition by retaining the older, more known company name is being thrown out the window? No wonder they are merging.
Activision Blizzard? WTF is that a Taiwanese company?
I prefer 'Snowblind'. That's what happens when you lose your 'vision in a Blizzard.
:-P
Seriously, 'Snowblind' would be a really cool name for a game company. Guess that's why we'll never see it
I wonder if we can now trade our Warcraft Gold for new Songs for Guitar Hero III on sites like mmoExchange.com or GamerTex.com
Great, two big faceless companies are merging... Blizzard barely makes games, and Activision is a void of good ideas as well...
So Good luck with that company.
No, they'll have to retool it to Stroggcraft now.
I hate to say it, but Blizzard has officially become a big faceless game shop. Activision has been a big faceless publisher for decades now. It's a match made in corporate heaven, as both companies have the same goals and low standards to make it work.
For me at least, Activision has become synonymous with "sell-out". They buy all the cool game houses, then push inferior games out at a ludicrous pace. The Activision brand has never meant anything to gamers, they're just the Wal-Mart of video games.
Blizzard, *chuckles* they let WoW's success go to their head. Where the hell is Starcraft 2 or Warcraft 4 ? Diablo 3 ? They have all these massive franchises that are sitting around getting old, and now they even have Bill Shatner trying to sell their 3 year old MMO. I've played the damn game, I've seen what there was to see. Give me WoW 2 already!
Two bullshit companies merging to form one big bullshit. Woop-tee-doo!
-Billco, Fnarg.com
Any chance the Activision involvement could lead to World of Warcraft ported to next-gen consoles?
VOTE!
Read radical news here
Well, I for one will simply love killing those pesky Night Elves with my shiny new Timberwolf! :D:D:D
How's it feel to strapped into an 85 ton walking nuke reactor at 6am?
A hell of a lot less chafing than being strapped into a saddle. Not to mention the smell...
Science advances one funeral at a time- Max Planck
They could have been bought by EA instead. Count your blessings.
Please Activision do not cut us out. We like Blizzard and they seem to like us.
They're of comparable sizes, and which is bigger depends on the measure. They have similar revenues (~$3.8 billion), market capitalizations (~$19 billion), and employees (~7000). EA might be bigger by whatever measure the article writers prefer, but it isn't by a big margin even if so.
10 PRINT CHR$(205.5+RND(1)); : GOTO 10
The player begins each game with 2,000 points. Along the way, they pick up four different treasures (eight of each) which bring different point values:
* Newspaper: 5 points
* Money bags: 2000 points
* Silver bars: 3000 points
* Gold bars: 4000 points
* Diamond rings: 5000 points
There are also two ways of losing points:
* Falling in a hole: -100 points
* Running into rolling logs: total loss depends on how long Harry is in contact with the log. All WOW characters are now named Harry.
Contact with all other hazards (as mentioned above) results in loss of turn.
A perfect score by collecting 32 treasures without any contact with hazards is 114,000.
Finally, the game will be ported to the Nintendo Wii, which will change the game acronym to WoWii.
Game: Player 'Donald J Trump' now has AI skill level 'experimental'.
maybe activision can learn something from blizzard. blizzards games seem to work pretty good under wine on linux
My ism, it's full of beliefs.
does this mean that starcraft ghost will be developed by activision and maybe use the call of duty engine?
Starcraft FPS developed by Infinity Ward, please.
http://zapalley.com/comic/2007/12/03/mergers-and-acquisitions/
That guy is jumping over a shark!
To boldly use to and too two times and get it right too! They're not gonna believe their eyes when they see it there!
theyre bad news. they turn everything they touch into shit. vivendi is the company for buyouts of small companies (Sierra being the best example), and the KING of crappy movie licenses. anyone remember their awsome X-Files game? Eragon PSP? World of Conflict (which i was fortunate enough to work on; check the credits for Ernest Devaney) is the best thing to ever run through their greasy fingers. oh wait, they had nothing to do with the development of that game. right.
I cant wait for the new MMORG based on Pitfall Harry and Swinging on Vines over Crocodiles and jumping Scorpions to get the $ Bag.
The older company here would actually be Activision... So I'm not sure what your rant is about.
Coz eternity my friend, is a long *ing time.
maybe now they will cancel online fees
In Soviet Halo, the game kills you (socially anyway)
I suggest you stop posting this nonsense and move on. There are better battles to fight (and win) than this one.
----- You know you have ego issues when you register a domain in your name.
Finally Blizzard games for the Atari 2600!
I just thought of this new class for WoW: Bard.
You plug in your Guitar and cast spells/do attacks by playing a riff.
Can't wait to roll up Lemmy the Orc Bard... or maybe an undead Eddie.
It could be worse.
For example, take "Square Enix". It always just made me wonder what other shapes of Enixes are out there. Is there a round Enix too, for example?
A polar bear is a cartesian bear after a coordinate transform.
Is there a release date set for Jun Lee's Pro Gold Farmer?
Baaaa
Just to note my experience.
Playing renegade was GREAT. Looking at my screen while playing renegade sucked horribly.
Thanks
How much is your data worth? Back it up now.