This will be followed by some discussion regarding the major trends and major players in the industry. In April 2008, the permitted the merger to take place. The Holiday Bonus program was implemented to provide a lump sum bonus at year end to make the Holidays special for Blizzard employees. Concurrently with the merger, Vivendi will purchase approximately 62. In connection with the completion of the acquisition, King's ordinary shares ceased to be publicly traded on the New York Stock Exchange as of the close of market yesterday, February 22, 2016, and the listing was suspended before the market opened today. Blizzard had no choice, this was Vivendi's decision. The diversification is so strong in fact, more risks can be undertaken.
Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. From the case it appears that Activision Blizzard is not just trying to flex its economic power. Opportunities lie in their enormous customer base, growth of international markets, and merchandise sales stemming from existing products. Kaos has blown up the walls of the feared Cloudcracker Prison freeing the most notorious villains in Skylands. Blizzard followed with Warcraft 2: Tides of Darkness 1995 , a graphically rich expansion on the original that offered a number of interface and multiplayer improvements. There are two basic forms of hardware that can be used to play a video game a computer, or a gaming console, like an Xbox. Technical Economies, while inputs remain the same, quality, if not also quantity should increase.
The merger of the two companies adds stability in so many ways. It had a network of 318 million monthly unique users as of fourth quarter 2015, has developed more than 200 exclusive games, and offers games in over 200 countries and regions through its and websites, Facebook, and mobile distribution platforms such as the Apple App Store, Google Play Store and Amazon Appstore. This leads me to believe that besides the existence of free cash flow, Activision and Blizzard saw an opportunity to make above-normal profits. They have annual revenues of 4 billion, annual income of 2. He said that after exploring ways to develop such expertise within Activision, he decided that the better, if not only way, was to merge with another company.
Also, the cyclical nature of video game development may hinder profitability. Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge… 3714 Words 15 Pages On November 17th, 2004 Kmart and Sears publicly announced the impending merger of the two struggling companies to become Sears Holding Corporation. Activision Blizzard was formed by combining Activision, one of the world's leading independent publishers of interactive entertainment, and Vivendi Games, Vivendi's interactive entertainment business, which includes Blizzard Entertainment's R World of Warcraft R , the world's 1 subscription-based massively multiplayer online role-playing game. Meaning that the more people that are connected, the more valuable the connection becomes. Vivendi will also buy 62. Second, some insight will be provided on the merging companies, Activision and Blizzard. Also, due to the closure of Sierra, the Sierra Community Forums servers have been shut down as of the 1st of November 2008.
Factors that could cause Activision Blizzard's actual future results to differ materially from those expressed in the forward-looking statements set forth in this release include, but are not limited to, sales of Activision Blizzard's titles in its fiscal year 2009, shifts in consumer spending trends, the seasonal and cyclical nature of the interactive game market, Activision Blizzard's ability to predict consumer preferences among competing hardware platforms including next-generation hardware , declines in software pricing, product returns and price protection, product delays, retail acceptance of Activision Blizzard's products, adoption rate and availability of new hardware and related software, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, customers, vendors and third-party developers, domestic and international economic, financial and political conditions, foreign exchange rates, integration of recent acquisitions and the identification of suitable future acquisition opportunities, Activision Blizzard's success in integrating the operations of Activision and Vivendi Games in a timely manner, or at all, and the combined company's ability to realize the anticipated benefits and synergies of the transaction to the extent, or in the timeframe, anticipated. On July 8, 2008, Activision announced that stockholders had agreed to merge. Subject to any obligations under applicable law, rules and regulations, none of Activision Blizzard, King or any member of their respective boards of directors undertakes any obligation to update any forward-looking statement whether as a result of new information, future developments or otherwise, or to conform any forward-looking statement to actual results, future events, or to changes in expectations. Blizzard Entertainment, one of four divisions of Vivendi games, was the key ingredient for synergy between the two firms. Activision joined developers RedOctane and Harmonix Music Systems for the sequels to 2005 , a rhythm-based game that became a popular phemonenon. Thomas Tippl, formerly Chief Financial Officer of Activision Publishing, has been appointed Chief Financial Officer of Activision Blizzard and Jean-Francois Grollemund, Chief Financial Officer of Vivendi Games, has been appointed Chief Merger Officer of Activision Blizzard. The demographics the companies appeal to are fairly different age wise and geographically.
The merger makes Activision of Vivendi Games former divisions. By this I mean larger more complicated projects with higher potential returns can be invested in since revenue will be more reliable. Lastly, I will give my personal views of the merger itself. I truly believe the merger of these two companies will lead to some of the most creative and fun video game software to date. The company itself was moderately vertically integrated, with ownership of some development, publishing, and distribution activities.
By that I mean no other firms were competing to merge with Activision or Blizzard. Activision, as they are commonly known, have great customer support and even better technical support, despite having to deal with one of the most impatient and finicky customer bases, the gamer. Activision Pre-merger: Activision was a leading developer and publisher of video game software for consoles. As a video game company Activision does not have the… 1531 Words 7 Pages question in this incident is whether Blizzard Resorts Inc. The success of Activision inspired a wave of imitators, and soon the market was flooded with games of dubious quality. Their response was to create a company where designers would be an essential part of the brand identity, with the lead developer of a given title receiving credit on the game box.
Activision and still exist as separate entities. While my points are speculation as well, I've tried to stick to the points I think make the most sense. Of course Activision Blizzard will be profiting from the sales of its products and services, but it is the consumers who will receive the most satisfaction. I am also very confident that, with the new leadership team in place, the new entity is perfectly positioned to take advantage of these rapidly developing markets across the globe. But even the optimists wonder if Activision can continue its pace of growth. Developers specialize in the development of the games itself, leaving the sales and distribution to publishers. None of Activision Blizzard, King, or their respective directors, officers or employees, advisers or any person acting on their behalf, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements in this Announcement will actually occur.