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Activision-Vivendi Games To Merge and Renamed Activision Blizzard

Game publishers Activision and Vivendi Games will merge their companies into one and be renamed Activision Blizzard. The result will create a company with revenues of $3.8 billion in 2007. The deal is expected to be made official in the first half of 2008. What does this say for Sierra only time will tell, but I am here to say I don’t think sierra will be around much longer.

Activision, Inc. (NASDAQ: ATVI) and Vivendi (Paris: VIV) today announced that they have signed a definitive agreement to combine Vivendi Games, Vivendi’s interactive entertainment business — which includes Blizzard Entertainment’s World of Warcraft®, the world’s #1 multi-player online role-playing game franchise — with Activision, creating the world’s largest pure-play online and console game publisher. The new company, Activision Blizzard, is expected to have approximately $3.8 billion in pro forma combined calendar 2007 revenues and the highest operating margins of any major third-party video game publisher. On 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. Activision, one of the world’s leading independent publishers of interactive entertainment, is best known for its top- selling franchises, including Guitar Hero®, Call of Duty® and the Tony Hawk series, as well as Spider-Manâ„¢, X-Menâ„¢, Shrek®, James Bondâ„¢ and TRANSFORMERSâ„¢. Blizzard Entertainment, a division of Vivendi Games, has projected calendar 2007 revenues of $1.1 billion, operating margins of over 40% and approximately $520 million of operating profit. Blizzard owns the #1 multi-player online role-playing game franchise, World of Warcraft, which currently has over 9.3 million subscribers worldwide. Blizzard’s World of Warcraft, Warcraft®, StarCraft® and Diablo® games account for four of the top-five best-selling PC game titles of all time. Vivendi Games also owns popular franchises, including Crash Bandicootâ„¢ and Spyroâ„¢. Pro forma for calendar 2007, Activision Blizzard expects to generate approximately 70% of its revenues from owned franchises. As a result of the business combination, Activision Blizzard expects to have the most diversified and broadest portfolio of interactive entertainment assets in its industry, positioning the combined company to capitalize on the continued worldwide growth in interactive entertainment.

Jean-Bernard Lévy, Chairman of the Management Board and Chief Executive Officer of Vivendi stated: “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. We believe this transaction will create significant value for Activision Blizzard and Vivendi stockholders. In Activision, we have found a partner with a highly complementary business and strong operating team. Bobby Kotick and Brian Kelly are industry pioneers, well known for creating shareholder value. The combined strength of the existing management teams at both companies will set the stage for further profitable growth of Activision Blizzard. 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.”

René Penisson, Member of the Management Board of Vivendi and current Chairman of Vivendi Games, added: “We are very confident that by combining forces, Activision Blizzard will set the highest standards in quality, reputation and profitability, and will bring together the best creative teams in the industry. The combination of this unique product portfolio with highly professional employees gives us great confidence in the growth prospects for Activision Blizzard.”

Said Robert Kotick, Activision’s Chairman and Chief Executive Officer: “This is an outstanding transaction for Activision and our stockholders, as well as a pivotal event in the continuing transformation of the interactive entertainment industry. By combining leaders in mass-market entertainment and subscription-based online games, Activision Blizzard will be the only publisher with leading market positions across all categories of the rapidly growing interactive entertainment software industry and reach the broadest possible audiences. By joining forces with Vivendi Games, we will become the immediate leader in the highly profitable online games business and gain a large footprint in the rapidly growing Asian markets, including China and Korea, while maintaining our leading operating performance across North America and Europe. Activision stockholders will benefit from significantly increased earnings power and the recurring nature and predictability of subscription-based revenues, while also having the opportunity, if they choose, to receive $27.50 per share for a portion of their shares in the post-closing tender offer.”

Kotick continued: “Vivendi Games provides Activision with unique strategic and financial benefits and will allow us to leverage our franchises into emerging online opportunities as Blizzard has done so successfully. Activision has been very focused on margin expansion, and this transaction will meaningfully increase our overall operating margins as we expand our franchises online and in new geographies. Diversifying our revenue base among subscription-based online, console and PC formats, as well as wireless and casual emerging opportunities, gives us the broadest platform to capitalize on industry growth. With Blizzard’s successful franchises, such as World of Warcraft, StarCraft and an exciting pipeline of yet-to-be announced titles, Vivendi Games’ and Blizzard’s management team will join with Activision’s strong and experienced leaders to become an even more powerful force for innovation in online and offline interactive entertainment across a wide range of platforms. This transaction also provides a unique relationship with Universal Music Group – the world’s largest music company – which will benefit Guitar Hero and further extend our sizable leadership position in music-based games.”

Mike Morhaime, President and Chief Executive Officer of Blizzard, added: “Blizzard’s industry-leading PC games business, with a track record of nine consecutive bestsellers and a global subscriber base of more than 9.3 million World of Warcraft players, is an exceptional fit for Activision’s highly profitable console games business. From our interactions with the Activision team, it is clear we have much in common in terms of our approaches to game development and publishing. Above all, we are looking forward to continue creating great games for Blizzard gamers around the world, and we believe this new partnership will help us to do that even better than before.”

Ghostbusters Teaser Trailer

Vivendi Games is partnering with Sony Pictures to try and turn “Ghostbusters” into a videogame franchise. First title in what the publisher hopes will be a series of “Ghostbusters” games is set for release in fall ‘08 from Vivendi’s Sierra label. I don’t know why I am even posting this you will understand after you watch the vide.

TimeShift Xbox 360 Multiplayer Demo Details

Sierra Entertainment announced today that a multiplayer demo for TimeShift will be available via Xbox Live download available On Marketplace On November 14.

Developed by Saber Interactive and published by Sierra Entertainment, TimeShift is a first-person shooter (FPS) video game that allows players to master the flow of time, to become the ultimate weapon in war-torn environments. Armed with the experimental time-manipulating Beta Suit and a huge arsenal of weaponry and vehicles, players have the ability to slow, stop and reverse the flow of time, allowing them to control several aspects of each battle sequence. Intuitive time controls give the player the ultimate advantage in avoiding attacks, correcting mistakes and outsmarting the enemy.

With a comprehensive online 16-player multiplayer mode, featuring time grenades, 14 different maps and over 40 different features, TimeShift gears itself to the players’ unique style of gameplay by allowing matches to be completely customizable. Players can battle it out in a tight, well-balanced multiplayer experience that implements several aspects of the time-manipulating gameplay element found in the single-player campaign.

Empire Earth III Demo Released

The Empire Earth III website reveals that a demo of the soon-to-be-released RTS game will be made available later today. The demo is already showing available from FilePlanet but the Empire Earth III Download Site still says today sometime.

The demo will contain single-player World Domination action in the Future epoch, skirmish versus CPU personalities, and online skirmish versus other humans.

Battlestar Galactica Demo Download

A playable demo for Battlestar Galactica is now available, offering the chance to sample the space combat in Auran’s top-down action game based on the science fiction TV show of the same name. The 102 MB demo can be found  at:

• AtomicGamer
• ComputerGames.ro
• FileFront
• Gamer’s Hell
• Sierra 

Spyro the Dragon Is Going To Be A Movie Star

Well the cute purple dragon Spyro looks to be slated to appear on the big screen. The Animation Picture Co. has picked up the Spyro rights form the Sierra Entertainment video game franchise to turn the little guy into a movie Star.

According to a report in Variety today, the animated film will be based on The Legend of Spyro trilogy of games and is to be adapted by brothers Steve and Daniel Altiere, who recently penned Dr. Dolittle 4.

Lets just hope they don’t screw it up.

Empire Earth III Goes Gold and Ships

Sierra announces that Empire Earth III is gold, and to expect the next installment in the real-time strategy series to show up in stores on November 6.

Sierra Entertainment, a division of Vivendi Games, announced today that Empire Earth III has gone gold and will be available on Windows PC November 6.

The pre-order campaign has already kicked-off at select retailers nationwide and features three exclusive unlockable units.

• Machine Mortar (Far East Region, Future Epoch) – A genetically engineered soldier that launches a devastating, area-affect salvo of shells
• Persian Mercenary (Middle East Region, Ancient Epoch) – An ambidextrous warrior armed with a pair of lethal blades
• Urban Special Forces (West Region, Modern Epoch) – A highly disciplined, well-armed Urban Special Operations soldier

Empire Earth III is a real-time strategy (RTS) videogame that places the entire globe at the touch of the fingertips making the earth a canvas for the strategy mind. Gamers will build and command an enduring global empire with the goal of World Domination. Empire Earth III is one of the few strategy games that offers players the scale and scope to take an empire from the ancient world to the far future.

Developed by Mad Doc Software, Empire Earth III is rated “T” for Teen. For more information, please visit the game’s official Web site at www.empireearth.com.

TimeShift Has Gone Gold

Sierra announces that TimeShift is gold, and that Saber Interactive’s “M”-rated 4D shooter will ship on October 30. A PC demo was released last week, and there’s also demo on Xbox LIVE. Here’s word:

Sierra Entertainment is pleased to announce that TimeShift for the XBOX 360® and Windows PC have gone gold, with a planned retail ship date of October 30, 2007. Developed by Saber Interactive, the highly-anticipated shooter allows players to master time to become the ultimate weapon. Armed with the experimental time-manipulating Beta Suit and a huge arsenal of weaponry, players have the ability to slow, stop and reverse the flow of time, allowing them to control several aspects of each battle sequence and puzzle situation. Intuitive time controls give the player the ultimate advantage in strategic attacks used to outsmart the enemy.

With a comprehensive online 16-player multiplayer mode, featuring time-controlling “chrono” grenades, 14 different maps and over 40 different customizable options, TimeShift is a truly unique multiplayer experience for every level of gamer, whether a novice or an expert.

WET The Game Trailer

A version of the WET The Game cinematic trailer, from the official website

TimeShift Demo Download

Playable demo for TimeShift is now available, offering samples of Sabre Interactive’s 4D shooter. The demo is available on Sierra’s FTP Server  in English and German. There is also a corresponding torrent seed for you torrent users.