News

Activision Blizzard union set for July 8th, industries "powerhouse"
Posted: 12.06.2008 11:43 by Jamie Davey Comments: 2
The merger between Activision and Vivendi's game unit will finally become official this July on the 8th, with a "most profitable" honeymoon afterwards.

This deal creates "a formidable new digital media powerhouse" for the videogames industry, let's hope they put all that swag toward something nice.

"We believe the transaction is set to create a formidable new digital media powerhouse and the most valuable interactive entertainment company worldwide, unlocking the value of industry juggernaut World of Warcraft, and possibly also setting a new benchmark for profit margins among publicly traded video game pure-plays," said analyst Colin Sebastian of Lazard Capital.

"Based on our revised analysis of the earnings power for the combined Activision Blizzard, we are increasing our price target to USD 40, which is based on 26 times the midpoint of our 2009 estimated combined company earnings per share range, and a 25 per cent premium to the sector, justified in our opinion by comparatively higher operating margins and more stable revenue streams."

Recently Electronic Arts has been feverishly trying to acquire Take-Two Interactive in a bid to re-level the playing field, there are rumblings that T2 would fare better with Ubisoft. Either way congratulations are in order for the happy corporate couple who together are now the heavy weights of gaming development.

Mr Lich Wrath, new Acti-Blizzard Community Manager


Source: gamesindustry.biz
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Comments

By Kres (SI Elite) on Jun 12, 2008
Kres
I&#039;d say only good can come out of it!
By herodotus (SI Herodotus) on Jun 12, 2008
herodotus
Lot of talk about profit margins, but at the risk of sounding selfish, what&#039;s in it for me?