Merger makes big gaming winner

Marketplace Staff Dec 3, 2007
HTML EMBED:
COPY

Merger makes big gaming winner

Marketplace Staff Dec 3, 2007
HTML EMBED:
COPY

TEXT OF STORY

Doug Krizner: The video games business is getting a stronger player. The French media conglomerate Vivendi is merging its video game business with California-based Activision. Activision created best-sellers Guitar Hero and Call of Duty.

This deal creates the world’s largest independent video game company, and a rival for industry leader Electronic Arts. Our European reporter, Megan Williams, has more.


Megan Williams: Look out, Madden NFL and Need for Speed. These top-selling video games by Electronic Arts will soon face a new big kid on the block.

It’s called Activision Blizzard, and it’s the result of an $19 billion deal between gaming publishers Activison and the French Vivendi Games. Vivendi puts out the World of Warcraft. The fantasy game attracts more than 9 million monthly subscribers, a top in the industry.

Vivendi will exchange its games and almost $2 billion for a 52 percent stake in the new company. Activision will invest $1 billion. The deal is expected to close early next year.

I’m Megan Williams for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.