Activision Blizzard Gains EU Approval

The merger of Vivendi Games with Activision has gained approval from the EU. Amid claims that it could prove to be anti-competitive the EU has argued that the combined company would still face stiff competition in the marketplace from the likes of EA, Sony & Nintendo amongst others.

Under the terms of the deal, Vivendi would hold a roughly 52 percent majority of the merged company by contributing Vivendi Games, valued at $8.1 billion, including Blizzard Entertainment, and $1.7 billion in cash. Activision would then be renamed Activision Blizzard and continue to operate on the Nasdaq as ATVI. Within five days of the deal closing, Activision Blizzard would launch a $4 billion all-cash tender offer to purchase up to 146.5 million Activision shares at $27.50. Vivendi has agreed to purchase up to $700 million of new shares at the same price.

• Current Activision CEO Robert Kotick will be president and CEO.
• Bruce Hack, current CEO of Vivendi Games, will serve as vice-chairman and chief corporate officer.
• Mike Griffith will be president and CEO of Activision Publishing (including the Sierra Entertainment, Sierra Online and Vivendi Games Mobile divisions in addition to the Activision business).
• Mike Morhaime will continue to serve as president and CEO of Blizzard Entertainment.
• Thomas Tippl, currently CFO of Activision, will become CFO.
• Jean-François Grollemund, currently CFO of Vivendi Games, will be appointed chief accounting officer of the new company.

The new company will be the largest of the third-party games publishers ahead of the likes of EA, Ubisoft and Take Two, with an estimated value of approximately $19 billion.