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Activision Blizzard Splits From Vivendi in $8.2 Billion Deal

You can now invest directly in Call Of Duty stock without having to worry about giving money to French people.

Why is Bobby smiling? (Hint: it's because he's massively wealthy.)
Why is Bobby smiling? (Hint: it's because he's massively wealthy.)

Companies generally tend to join together rather than grow apart. Mergers and acquisitions are far, far more common than a company actually splitting up into smaller pieces. There are exceptions everywhere, of course, but for every example like Bungie splitting away from Microsoft, there are dozens more about developers being gobbled up by a publisher. Which is one reason today's news about Activision Blizzard is so startling: in a $8.2 billion deal, the company's management has bought its freedom from the huge French company Vivendi. As of today, Activision Blizzard is an independent company.

The New York Times has plenty of details on the financial aspects of the deal, in which Vivendi will retain a 12% ownership stake in Activision Blizzard. Activision Blizzard will retain its current leadership of Bobby Kotick (CEO) and Brian Kelly (chairman). Kotick, for his part, seems optimistic about the future, as he probably should be, considering he was likely the driving force behind the split:

“We should emerge even stronger,” he said. “The transactions announced today will allow us to take advantage of attractive financing markets while still retaining more than $3 billion cash on hand to preserve financial stability.”

It's difficult to tell what this means for the future of Activision Blizzard, but at a first glance, it's probably best to guess "not much," at least from a consumer perspective. Without the oversight and red tape of a megacorporation like Vivendi above it, it's tempting to imagine that Activision Blizzard will be able to take more risks and experiment more when it comes to their game brands, but let's not kid ourselves: even without Vivendi looking over their shoulders, Activision Blizzard is still a gargantuan gaming entity. There's still going to be a Call of Duty every year, World of Warcraft will still remain the biggest MMO on the market for the foreseeable future, and the company will likely still try to make the safest bets on its megafranchises as we head into a new console generation. But it'll be interesting to see if being independent will encourage them to behave any differently than they have in the past.

122 Comments

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kingyo

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@paulunga: I think the record was more like 1.5mil concurrent, and that kinda doesnt mean that much, I mean one of wows expansions is (was?) the fastest selling pc game of all time and are regularly top sellers of the years they are released on top of monthly paid subscriptions as paid by eu and american customers. Gotta be honest as well that 30mil number sounds a bit like when world of tanks or league of legends quote players and its just the number of accounts that have ever been made, not that its not impressive, and not that warcraft doesnt massage numbers, just think it doesn't necessarily translate into money the same way as monthly subs do.

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MikkaQ

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@klei said:

Who the fuck cares about this? Seriously? Do youcare? I sure as hell don't.

Uh people who care about the business behind gaming? That stuff is more intriguing than like 99% of Activision's games.

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kristov_romanov

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@juda said:

btw if you dislike the french so much, feel free to knock down the greatest sign of american-ism there is, since the french gave it to you. Yea, the statue of liberty.

Translation
Translation

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n8

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This:

@shingro said:

You know, as much as we like to rag on Kotick... I got to give him and Activision props in general for being the only large gaming company that hasn't fallen all over itself to appeal to the casual market. They make hardcore games for hardcore gamers, they haven't EA-ed everything up just because they're dominant, and if rumor (and what E3 stage they were primarily on) is to be believed they were the only large publisher to push against the Microsoft DRM restrictions.

So I'll fucking raise a glass to Bobby K if they keep remembering their main customer base is gamers, and not throw us under the bus to chase casual, tablet or mobile money like a seemingly endless processing of gaming companies are doing.

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yukoasho

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@shingro said:

You know, as much as we like to rag on Kotick... I got to give him and Activision props in general for being the only large gaming company that hasn't fallen all over itself to appeal to the casual market. They make hardcore games for hardcore gamers, they haven't EA-ed everything up just because they're dominant, and if rumor (and what E3 stage they were primarily on) is to be believed they were the only large publisher to push against the Microsoft DRM restrictions.

So I'll fucking raise a glass to Bobby K if they keep remembering their main customer base is gamers, and not throw us under the bus to chase casual, tablet or mobile money like a seemingly endless processing of gaming companies are doing.

True enough. Even when they do stuff that's not catered to the gamer market (like Skylanders), it's made clear early on that it's not for the same market as Call of Duty or their Blizzard offerings. They're not trying to TURN their mainstays into titles that reach other markets, but - GASP - making separate titles for separate markets!

It's something more gaming companies could stand to learn. Not everything has to be for everyone.

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yukoasho

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@paulunga said:

Is WoW actually still the most played MMO? I'm not a betting man, but if I was my money would be with a bunch of free-to-play ones or something that's huge in China (Perfect World, maybe?).

Well, last I heard, they were still 7 million strong, and that's quite the achievement for a nearly decade-old subscription-based MMO. People forget that game came out in 2004.

And now I feel old.

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tangmcgame

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@klei said:

Who the fuck cares about this? Seriously? Do youcare? I sure as hell don't.

Where do you think you are? This isn't a Yahoo article about another scrawled message on a receipt or the Kardashians or whatever. This is a gaming website posting an article about the games industry. If you don't care, fine, but a lot of people who come to GiantBomb do care about and enjoy these articles.

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alwaysbebombing

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Well, that 3 Billion on hand would keep them going for a good while.

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fattony12000

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Edited By fattony12000

Well, considering that they still bring in around $115,423,000 a month from their (dwindling) 7.7 million subscribers to WoW, that kinda cash isn't too hard to come by for Activision Blizzard.

If we multiply that monthly figure by twelve, we come to an income of approximately $1,385,076,000 per annum. And this is during the slow decline of WoW.

Yes, not all of that goes into the ActiBlizz bank account, but a lot of it does.

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divergence

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I'm still surprised that Kotick is around.

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miva2

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That summary and picture made me laugh. Bobby is so funny.

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Enigma_2099

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A company complains about losing profits from the sale of used games, but has enough money lying around to do something like this?

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laserbot

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@juda said:

btw if you dislike the french so much, feel free to knock down the greatest sign of american-ism there is, since the french gave it to you. Yea, the statue of liberty.

And this is why no one likes the french.

Because they gave us a giant copper statue that we were too cheap to clean once in a while?

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FMinus

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@juda said:

btw if you dislike the french so much, feel free to knock down the greatest sign of american-ism there is, since the french gave it to you

The French did not give the United States the American flag. Now go chill the fuck out for a while and reevaluate if you should be coming to this particular site with your lack of any sense of humor.

They have shown you what colors to use on your beloved flag :D

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Claude

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That's a lot of Rories.

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Phished0ne

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Edited By Phished0ne

@yukoasho said:

@paulunga said:

Is WoW actually still the most played MMO? I'm not a betting man, but if I was my money would be with a bunch of free-to-play ones or something that's huge in China (Perfect World, maybe?).

Well, last I heard, they were still 7 million strong, and that's quite the achievement for a nearly decade-old subscription-based MMO. People forget that game came out in 2004.

And now I feel old.

I wonder if that literally means 7 million active accounts, or 7 million accounts. Companies that keep track of accounts like that tend to fudge numbers by counting all accounts over active ones. Its possible they have 7 million accounts registered but not closed down due to people maybe wanting to come back, but somewhere in the range of 4-6(still a lot though) of actual 'active' players.

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JouselDelka

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@mikkaq said:

@klei said:

Who the fuck cares about this? Seriously? Do youcare? I sure as hell don't.

That stuff is more intriguing than like 99% of Activision's games.

bam

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GiantAdenoid

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@oldirtybearon: Oh man, can't stop thinking about a Weekend at Bernie's sitcom now.

That episode where they went to the taxidermist's was classic.

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Dagbiker

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Edited By Dagbiker

@juda said:

btw if you dislike the french so much, feel free to knock down the greatest sign of american-ism there is, since the french gave it to you. Yea, the statue of liberty.

You built that and had no space for it, so you gave it to us. Thanks though.