In a surprising and wholly unexpected Sunday announcement, Blizzard Entertainment owner Vivendi Games announced that it will be merging its assets and studios with those of Activision. In all, the deal is valued at $18.9 billion.
Once the merger is complete, Activision will be known as Activision Blizzard, with publishing label Vivendi Games operating as a wholly owned subsidiary. The new company is said to have "the highest operating margins of any major third-party video game publisher," with an estimated $3.8 billion in "pro forma combined calendar 2007 revenues."
Former Vivendi Games parent company Vivendi will hold a majority stake, approximately 52%, of Activision Blizzard. Vivendi-designated representatives will also occupy a majority of the new company's board of directors. The board will consist of 11 members: six appointed by Vivendi, two from Activision, and three independent directors who currently serve on Activsion's board.