Merger makes big gaming winner

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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.