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.'"
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
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.
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
You know, that might actually be quite fun. Did you ever play Loom? That was a point-and-click adventure game where all your actions were done by playing short phrases of music.
Update it to the present day, and you have your character roaming the wilderness blowing monsters away with your sw33t r1ffs. The more powerful the spell, the harder it is to play, so your character's skills are directly related to your skills. If you could solve the lag issue, you could even have the ability to team up with other players and jam together for extra power.
Hmm. Different character classes would map to different types of music quite well. Healer == psychedelic 60s. Tank == 80s power ballad. Fighter == rock. Necromancer == death metal...
Or maybe... 1bn + 2bn = 18.8bn.
The way I see it, Activision must have had some super cool idea for the next major online cash cow err game. But, Activision must have determined that they lacked the resources to complete this epic production on their own. So, they carefully weigh their options of ways to raise the extra 2bn they estimate is needed to complete the project. Stock offering, venture capitalists... apparently they decided that their best option was to merge with another larger gaming company.
There's no reason why this new 3bn project should interfere with the day to day operations of the other 15.8bn of whatever makes up the total merger. I can't wait to find out exactly what this new 3bn project is.