Unexpected Alliance: Activision and Vivendi Merge in $18 Billion Deal

Say hello to Activision Blizzard, the result of a Sunday-morning announcement between Activision and Vivendi Games that they’ve agreed to combine their resources. The new company results in about $3.8 billion of pro forma and the greatest operating margins of any current third party publisher. Stick that in your craw, Electronic Arts!

Instead of culling the name of their partner, Activision instead chose to draw power from the company’s most influential subsidiary, Blizzard Entertainment, clearly banking on the hit-maker’s more established pedigree. For Vivendi at large, already an entertainment powerhouse in other key areas of the media, this provides an excellent opportunity for them to continue expanding their games business. The company’s CEO, Jean-Bernard Lévy, had the following to say:

“This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector. By combining Vivendi’s games business with Activision, we are creating a worldwide leader in a high-growth industry. We are excited about the opportunities for Activision Blizzard as a broader entertainment software platform.”

It’s highly unlikely that the partnership will affect Blizzard’s current or future development plans. After all, who would want to mess with the formula of a company that’s produced nine hit games in a row? As cited above, it does bode very well for Vivendi Games, though, whose only other major acquisition has been Sierra Entertainment.

Activision Blizzard now holds the rights to one of the most diverse gaming portfolios in the business, spanning everything from Guitar Hero to MMO darling World of Warcraft. Now, if only this alliance would result in such awesome things as “I Am Murloc” DLC for Guitar Hero III or Call of Duty 5: Terran Warfare.

Click here for the full (not to mention lengthy) press release.