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. Blizzard, currently owned by the French media group Vivendi, is the biggest player in online gaming and Warcraft is the global market leader of what are known as massively multi-player online role-playing games, or MMORPGs. 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. 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. "By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry."
News source: BBC View: Neowin Forum Discussion
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