Activision Owns Blizzard After Vivendi Merger/Buyout

I never saw this coming. Activision, the popular software mega-publisher and Vivendi Games, owner of Blizzard Entertainment, have merged to form "the world's most profitable games business," cleverly named Activision Blizzard. All the reports seem to emphasize "merger" but if your name drops off the company letterhead, isn't that a buyout or takeover?

It's not that simple. In fact, deciding who will be "wearing the pants" in the relationship, is downright confusing. Vivendi and Activision will be the ones who are merging, despite Blizzard's name being used to hype up the stock price, I'm guessing. Vivendi will own approximately 52% of post-merger company, though Activision's current CEO, Bobby Kotick, will take control of the new company.

Jean-Bernard Lévy, Vivendi's chief executive: "We look forward to being an active and supportive majority stockholder in a company that is poised to lead the worldwide interactive entertainment industry in the years ahead." Not sure what he's so excited about. Didn't he just get fired or demoted?

Oh, that's right. Chief Executives usually make MORE money when they get canned on the job.

Activision/Vivendi Merger Press Release