Activision Inc. and Vivendi signed a definitive agreement to combine Vivendi Games ,which includes Blizzard Ent

Activision Inc. and Vivendi today announced that they have signed a definitive agreement to combine Vivendi Games — which includes Blizzard Ent, creators of WORLD OF WARCRAFT — with Activision, creating the world’s largest pure-play online and console game publisher. The new company, Activision Blizzard, is expected to have approximately $3.8 billion in pro forma combined calendar 2007 revenues and the highest operating margins of any major third-party videogame publisher. On closing of the transaction, Activision will be renamed Activision Blizzard and will continue to operate as a public company traded on NASDAQ under the ticker ATVI.

Activision is best known for its top-selling franchises, including GUITAR HERO, CALL OF DUTY and the TONY HAWK series, as well as SPIDER-MAN, X-MEN, SHREK, JAMES BOND and TRANSFORMERS. Blizzard Ent. has projected calendar 2007 revenues of $1.1 billion, operating margins of over 40% and approximately $520 million of operating profit. Blizzard owns the #1 multi-player online role-playing game franchise WORLD OF WARCRAFT, which currently has more than 9.3 million subscribers worldwide. Blizzard’s WORLD OF WARCRAFT, WARCRAFT, STARCRAFT and DIABLO games account for four of the top-five best-selling PC game titles of all time. Vivendi Games also owns popular franchises, including CRASH BANDICOOT and SPYRO. Pro forma for calendar 2007, Activision Blizzard expects to generate approximately 70% of its revenues from owned franchises. As a result of the business combination, Activision Blizzard expects to have the most diversified and broadest portfolio of interactive entertainment assets in its industry.