Activision Blizzard
Activision Blizzard
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Activision Blizzard

Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. Activision Blizzard currently includes three operating units: Activision, Blizzard Entertainment and King.

Founded in July 2008 through the merger of Activision, Inc. and Vivendi Games, the company owns and operates additional subsidiary studios, as part of Activision, including Infinity Ward, Treyarch, and Sledgehammer Games. Among major intellectual properties produced by Activision Blizzard are Call of Duty, Crash Bandicoot, Guitar Hero, Skylanders, Spyro, Tony Hawk's, Diablo, Hearthstone, Heroes of the Storm, Overwatch, StarCraft, World of Warcraft, and Candy Crush Saga. Under Blizzard Entertainment, it invested in esports initiatives around several of its games, most notably Overwatch and Call of Duty. Activision Blizzard's titles have broken a number of release records. As of March 2018, it was the largest game company in the Americas and Europe in terms of revenue and market capitalization.

The company has also been involved in multiple notable controversies, including allegations of infringed patents and unpaid royalties. In late July 2021, it was sued by the California Department of Fair Employment and Housing on allegations of sexual harassment and employee discrimination. The suit triggered an investigation by the U.S. Securities and Exchange Commission, multiple workplace walkouts, the resignation or dismissal of several employees, the loss of multiple company event sponsors, and hundreds of workplace harassment allegations.

Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion on January 18, 2022. The acquisition was completed on October 13, 2023. Activision Blizzard is a subsidiary of Microsoft Gaming along with Xbox Game Studios and ZeniMax Media.

The original Activision company was founded in 1979, as a third-party developer for games on the Atari Video Computer System. In 1988 the company expanded into non-gaming software and renamed itself Mediagenic. This venture was not successful, incurring heavy losses. In 1991 a group of investors led by Bobby Kotick bought the company. Kotick instituted a large restructuring to reduce debt, including renaming the company back to Activision and moving it to Santa Monica, California. By 1997 the company was profitable again. Kotick spent the next decade expanding Activision's products through acquisitions of around 25 studios. This resulted in Activision publishing several successful series of games, including Tony Hawk's, Call of Duty, and Guitar Hero. However, by around 2006, the popularity of massively multiplayer online (MMO) games started to grow. Such games provide a constant revenue stream to their publishers, rather than only a single purchase, making them a more valuable proposition. None of Activision's subsidiaries had an MMO or the capability to make one quickly. Activision was also facing tougher competition from companies like Electronic Arts, as well as slowdowns in sales of their key game series.

Around 2006, Kotick reached out to Jean-Bernard Lévy, the CEO of the French media conglomerate Vivendi. Vivendi at that time had the games division Vivendi Games, a holding company principally for Sierra Entertainment and Blizzard Entertainment. Kotick wanted to get access to Blizzard's World of Warcraft, a successful MMO, and suggested a means to acquire this to Lévy. Lévy instead offered that he would be willing to merge Vivendi Games with Activision, but only if Vivendi kept majority control of the merged company. According to those close to Kotick, Kotick was concerned about this offer as it would force him to cede control of Activision. However, after talking to Blizzard's CEO Mike Morhaime, Kotick recognized that Vivendi would be able to give them inroads into the growing video game market in China.

Kotick proposed the merger to Activision's board, which agreed to it in December 2007. The new company was to be named Activision Blizzard and would retain its central headquarters in California. Bobby Kotick of Activision was announced as the new president and CEO, while René Penisson of Vivendi was appointed chairman. The European Commission permitted the merger to take place in April 2008, approving that there weren't any EU antitrust issues in the merger deal. On July 8, 2008, Activision announced that stockholders had agreed to merge, and the deal closed the next day for an estimated transaction amount of US$18.9 billion.

Vivendi became the combined company's majority shareholder at 54% of outstanding shares, equating to 52% if shares were to be fully diluted. The rest of the shares were held by institutional and private investors, and were to be left open for trading on the NASDAQ stock market for a time under the ticker symbol ATVID, and subsequently as ATVI (Activision's stock ticker). At this point, Lévy replaced René Penisson as chairman of Activision Blizzard. The merger was completed on July 9. While Blizzard retained its autonomy and corporate leadership in the merger, other Vivendi Games divisions such as Sierra ceased operation. With the merger, Kotick was quoted stating if a Sierra product did not meet Activision's requirements, they "won't likely be retained." Some of these games ultimately were published by other studios, including Ghostbusters: The Video Game, Brütal Legend, The Chronicles of Riddick: Assault on Dark Athena, and 50 Cent: Blood on the Sand. However, a number of Sierra's games such as Crash Bandicoot, Spyro, and Prototype were retained and are now published by Activision.

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