The word on the Locust infested streets of Sera is that Legendary Pictures is looking to purchase Epic Games. No clue as to whether or not the companies would change their name, but they might as well go for “Uber,” I can’t really think of any thing else that tops Epic or Legendary (Artifact perhaps?)

The two studios have been working closely with each other on the film adaptation of Gears of War, and apparently have bonded over a love of Chainsaw Bayonets, leading to speculation that the purchase is at the very least being discussed seriously.

Legendary Pictures’ chairman Thomas Tull has shown interest in video games before, as he was co-founder of publisher Brass Entertainment, but subsequently left, as the company was focused on Hollywood licensed productions, and we all know how those tend to go.

So perhaps Tull has gotten a taste for gaming and is looking for a real company to get involved with. He could certainly do much worse than Epic, which owns the Gears of War franchise and the Unreal Engine.

Legendary offered no comment but Epic had some nice things to say about Legendary, which at least indicates they play well together, so getting hitched isn’t totally out of the question.

“We have publicly announced that Epic and Legendary are partnering on the “Gears of War” movie. We’re very excited about that project and have the highest regard for Thomas Tull and his organization,” said a spokesperson for Epic.

The pairing would provide Epic with whole helluva lotta money, and Legendary would get an epic game studio (sorry, couldn’t resist.)

Stay tuned for more info as it comes.

Source: Variety

As reported earlier, Take-Two has allowed EA to join the company for some “alternative strategic planning” sessions. In short, Take-Two believes that EA’s initial offer was not lucrative enough, and has shifted focus in an effort to convince EA that they should sweeten the deal.

Could a SackBoy PowerPoint type presentation change the minds of EA executives? The two emails featured after the jump showcase yesterday’s email from Take-Two to EA, and today’s response from EA to Take-Two.

August 18, 2008

Dear Strauss:

Thank you for taking my call on Friday and for your response letter on August 17, 2008. As discussed on Friday, given the passage of time, we have to validate the assumptions used in the model to support our offer price of $25.74 per share in cash.

In addition, we no longer believe we can integrate Take-Two ahead of the important holiday season. Accordingly, we require due diligence to support a transaction and are therefore letting the tender offer expire tonight.

However, we are pleased to accept your offer to review your management presentation as outlined in your letter. We continue to have great respect for Take-Two’s creative teams and products and are hopeful that we can work together to reach a mutually agreed transaction.

Sincerely, /s/ John Riccitiello John Riccitiello Chief Executive Officer

Below is the text of the letter sent yesterday by Mr. Zelnick to Mr. Riccitiello:

August 17, 2008

Dear John:

Thank you for your recent expression of interest for Electronic Arts Inc. (”EA”) to participate in Take-Two Interactive Software, Inc.’s (the “Company”) formal process to evaluate the Company’s strategic alternatives. As you know, we have been willing to have EA participate in this process following the successful launch of GTA IV, and we are happy to include EA now.

As I mentioned when we spoke on Friday, our process begins with an in-depth management presentation. The Company has made significant strides since EA first expressed interest in the Company and this presentation includes material non-public information to which you would not otherwise have access, including information relating to our three year product release schedule and management’s financial projections.

The presentation also includes information about the underlying factors that have driven our strong operational and financial performance. I believe our presentation will enable you to understand better the value of our Company to EA. Prior to the management presentation, we will only require EA to enter into a confidentiality agreement.

The agreement would be limited to provisions required to comply with federal securities laws and to ensure the Company’s ability to protect the confidentiality of the information shared with you. I can assure you that this requirement is the same as or more favorable to EA than that which we have employed with all other participants in the process.

We understand that a number of months have passed since you first expressed interest in the Company and, accordingly, we will act quickly to assist you in moving through our process. Once we execute a confidentiality agreement, we are prepared to schedule the management presentation immediately.

With my best personal regards.

Sincerely, /s/ Strauss Zelnick Strauss Zelnick Executive Chairman of the Board

Source: IGN

Like it or not, with a reported shareholders vote of 92%, the merger first announced back in December 2007, is finally complete. All last minute hopes of a creative name for the new company are officially squashed, as the new name, “Activsion Blizzard”, proves that compromise is often boring as hell.

In exchange for 295.3 new shares of Activision stock, Vivendi, and all associated properties, become subsidiaries of Activision. However, an additional purchase of 62.9 shares at the tune of $1.7 billion put Vivendi in the drivers seat with nearly 52% ownership in the new entity.

Full details after the jump. Take a deep breath, you’re going to need it.

Activision Stockholders Approve Combination with Vivendi Games

SANTA MONICA, Calif., Jul 08, 2008 (BUSINESS WIRE) — Activision, Inc. (Nasdaq: ATVI) today announced that, at a special meeting of stockholders held earlier today, it received the stockholder approval necessary to consummate the company’s agreement with Vivendi, S.A. to combine Vivendi Games, Vivendi’s interactive entertainment business, with Activision’s businesses. All of the proposals required to effect the transaction received more than 92 percent of the shares voted. The transaction is expected to close on or around July 9, 2008.

Activision and Vivendi Games will combine their businesses through the merger of a newly formed, wholly-owned subsidiary of Activision with and into Vivendi Games. As a result of the merger, Vivendi Games, the parent company of Blizzard Entertainment and Sierra, will become a wholly-owned subsidiary of Activision. Vivendi will receive approximately 295.3 million newly issued shares of Activision common stock. Concurrently with the merger, Vivendi will purchase approximately 62.9 million newly issued shares of Activision common stock at a price of $27.50 per share for a total of approximately $1.7 billion in cash, resulting in a total Vivendi ownership stake in Activision Blizzard of approximately 52% on a fully diluted basis and approximately 54% of shares outstanding. As of the 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.

Headquartered in Santa Monica, California, Activision Blizzard, Inc. is a worldwide pure-play online and console game publisher with leading market positions across all categories of the rapidly growing interactive entertainment software industry.

Activision Blizzard maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, Norway, Denmark, the Netherlands, Romania, Australia, Chile, India, Japan China, the region of Taiwan and South Korea. More information about Activision Blizzard and its products can be found on the company’s website, www.activisionblizzard.com.

Cautionary Note Regarding Forward-looking Statements: Information in this press release that involves Activision Blizzard’s expectations, plans, intentions or strategies regarding the future are forward-looking statements that are not facts and involve a number of risks and uncertainties. In this release, they are identified by references to dates after the date of this release and words such as “outlook”, “will,” “remains,” “to be,” “plans,” “believes”, “may”, “expects,” “intends,” and similar expressions. 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, , the 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. Other such factors include the further implementation, acceptance and effectiveness of the remedial measures recommended or adopted by the special sub-committee of independent directors established in July 2006 to review historical stock option granting practices by Activision Blizzard and its board of directors, the finalization of the tentative settlement of the SEC’s formal investigation and final court approval of the proposed settlement of the derivative litigation filed in July 2006 against certain current and former directors and officers of Activision Blizzard relating to Activision Blizzard’s stock option granting practices, and the possibility that additional claims and proceedings will be commenced, including additional action by the SEC and/or other regulatory agencies, and other litigation unrelated to stock option granting practices and any additional risk factors identified in Activision Blizzard’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q and the definitive proxy statement filed on June 6, 2008 in connection with the proposed transaction with Vivendi. The forward-looking statements in this release are based upon information available to Activision Blizzard as of the date of this release, and Activision Blizzard assumes no obligation to update any such forward-looking statements. Forward-looking statements believed to be true when made may ultimately prove to be incorrect. These statements are not guarantees of the future performance of Activision Blizzard and are subject to risks, uncertainties and other factors, some of which are beyond its control and may cause actual results to differ materially from current expectations.

Modern day marriages often end with the bride keeping her last name, so why the look of awe on so many faces when two large corporations exchange vows, swap a little ink, and walk away bowlegged and smiling with the same brand recognition they had going into the deal?

This is true for Activision Blizzard, who after one final share holder vote on July 8th, will forever merge the world of warcraft with the world of modern warfare.

So bust out your mud covered food rations, and fill your gnomish hands with as many mana pots as you can stuff into a twenty slot bag, because gaming as we know it is about to change — for better, for worse, till poor sales do they part.

Justin Blankenship, a former FTC lawyer, expresses concern regarding the potential EA and Take-Two merger. Specifically, he believes that the merger may violate antitrust laws due to the hold the company would have on the videogame sports sector. Justin states:

I wouldn’t consider this [EA/Take-Two deal] inevitable quite yet,” … “Although you’ve yet to see antitrust law rear its head in a videogame merger, this is the best case I’ve seen where it could happen. Don’t be surprised if this gets more interesting than anyone expects.”

EA already holds several exclusive licenses across the professional and collegiate levels and a merger with Take-Two would mean the end of 2K Sports, the largest competitor for EA when it comes to sports related videogame content. It doesn’t take a degree in rocket science to figure this one out.

The main argument regarding this merger has been one focused on price, however the bigger picture that we believe concerns gamers even more, is choice and quality of product. We would love to hear your thoughts on this.