Activision and Vivendi Games to merge, Voltron-like, forming Activision Blizzard

The merger between Activision and Vivendi's game division (which includes Blizzard Entertainment), will create a challenger to Electronic Arts for the title of world's biggest publisher. Though Vivendi will have 52 percent ownership of the new company, Activision Blizzard will be run by Activision's Robert Kotick.

The transaction, valued at $18.9 billion, has been approved by the companies' boards, but is still subject to certain closing conditions as well as the approval of Activision shareholders, neither of which are expected to be problematic.

Of note, Blizzard Entertainment will continue to operate with relative independence. Mike Morhaime will continue as President and CEO and, as its own website announces, there will be no management changes at Blizzard Entertainment, nor will Blizzard share a development team with Activision. Why the independence? It might have something to do with the incredible success of Blizzard's World of Warcraft which, with over 9.3 million subscribers, has projected 2007 revenues of $1.1 billion, and approximately $520 million of operating profit.

Coverage at: Gamedaily News and Gamasutra and (and many other places besides).