Anatomy Of A Merger: Activision-Blizzard

A recent Securities and Exchange Commission report contains juicy details about the run-up to the merger of Activision (ATVI) and Blizzard Entertainment–owner Vivendi Games that will create the world’s biggest games company. Interestingly, discussions of hook-up — which effectively bumps former numero uno Electronic Arts (ERTS) into second place – in June 2006 with Activision management’s realization that MMOs would be a major part of the business in the future. The report details a not uncommon back and forth between the two companies with talks stalling at several turns. A brief run down is available here, while the entire filing is here. In the end, of course, Activision CEO Robert Kotick and Blizzard CEO Mike Morhaime hammered out an agreement that would keep the World of Warcraft-maker’s upper management team in place. Without question, this merger is going to be one of the most important events of the year.

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