Fallout from Activision deal

It's a little too early for specifics, but Vivendi's purchase of a controlling stake in Santa Monica-based Activision might not be the greatest news if you're a small game developer or publisher. The long-talked about industry consolidation has finally arrived, which means a few large players controlling much or all of the business. Of course, the deal makes perfect sense for both companies. Under the agreement, the new company will be called Activision Blizzard, with Vivendi controlling a 52 percent stake and Activision CEO Bobby Kotick still running the show. Pro-forma revenue of the combined entity will be $3.8 billion, which is a bit higher than Electronic Arts, up to now the biggest videogame company. Activision gets into the online gaming world, which is Vivendi's big draw (World of Warcraft), while Vivendi expands into Activision's turf, the console business. (NYT, PC World)


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook