Activision and Blizzard announced that they will merge in a deal worth $18.8 billion. The new company will be known as Activision Blizzard. The deal brings Activision with game series like Tony Hawk and Guitar Hero together with Blizzard, best known for creating what is currently the popular MMO, Warcraft.
Blizzard is owned by Vivendi. As part of the merger plan, Blizzard will invest $2 Billion in the new company, while Activision is putting up $1 Billion. 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.
"This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector," said Jean-Bernard Levy, Vivendi chief executive. ""By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry."
Obviously the two companies are hoping to each bring strengths to the table. GiN will continue to monitor the stock price of the new company. The new company will trade under Activision's old symbol, ATVI.