Santa Monica, Calif. - French media conglomerate Vivendi announced on Monday a deal with video game publisher Activision (NASD: ATVI), to combine its Vivendi Games unit with Activision to form a new company called Activision Blizzard, in a deal valued at $18.9 billion. Following the completion of the deal, Vivendi will hold a 52% stake in the combined company.

Vivendi Games owns Blizzard Entertainment, developers of the "World of Warcraft" multiplayer game -- which claims 9.3 million subscribers worldwide -- as well as other franchises like "Crash Bandicoot" and "Spyro."

Activision publishes the popular "Guitar Hero" franchise; other properties include "Call of Duty," "Tony Hawk" and "James Bond."

"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 Vivendi chairman and CEO Jean-Bernard Lévy.

"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," said Activision chairman and CEO Robert Kotick.

After the deal closes, Kotick will be president and CEO of Activision Blizzard, while Vivendi Games CEO Bruce Hack will serve as vice-chairman and chief corporate officer.

Related Links:
http://biz.yahoo.com/bw/071202/20071202005060.html?.v=1

http://www.blizzard.com

http://www.activision.com

Take Our Poll: Is a Merger Between Vivendi and Activision Good for Gamers?