Haga clic para modificar el estilo de subttulo del patrn By
Flavio A. Longato Almudena Guerrero Candel
Activision/Vivendi Games Merger
4/23/12
Agenda
We will talk about Gaming industry composition and past history Prior to merger brief insight into: Activision Vivendi
Merger
Why Vivendi decided to buy Activision How was the merger carried out
Stock Analysis
Gaming market at the time Shareholder reaction
Both CEO views on merger
Almudena 4/23/12
Industry Composition
Almudena 4/23/12
Industry Composition
Video Game Industry
Console Manufactures
Nintendo
Sony Microsoft
Distributors Retailers Software Publishers
Activision Electronic
Blizzards Arts
4/23/12
Industry Growth in $bn
4/23/12
Vivendi before the Merger
CEO Jean-Bernard Lvy Subsidiary of Vivendi S.A Vivendi Universal Games
Sierra Entretainment Blizzard Entretainment
Popular franchise:
Warcraft Starcraft
4/23/12
Vivendi before the Merger
History
1996 - CUC International acquired Sierra
Entretainment
1996- CUC International acquired
Davisson & Associate (owner of Blizzard)
End of 1996- Create CUC Software 1997- A lot of acquisitions:
Knowledge Gryphon Berkeley
Adventure
4/23/12
Software Systems
Activision before the Merger
First independent developer and
distributor of video games for gaming consoles.
1979- The company was founded by
former:
Jim Levy, music industry executive. Richard Muchmore, venture capitalist Former Atari programmers; David Crane,
Larry Kaplan, Alan Miller and Bob Whitehead 4/23/12
The Merger
Haga clic para modificar el estilo de subttulo del patrn
Flavio Longato
4/23/12
Merger
The merger was announced on
December 2nd 2007 and officially on July 9th 2008. Activision and Vivendi Games announce merger in a deal worth 18.9bn USD.
Vivendi Games, parent company to
Blizzard Entertainment and Sierra, will become the wholly-owned subsidiary 4/23/12 of Activision; though Vivendi, parent
The merger
Friendly merger The world's largest independent
video game publisher
Deal:
Activision, a $1.5 billion :Guitar Hero,
Call of Duty, and Tony Hawk franchises
Vivendi Games, whose Blizzard
Entertainment unit World of Warcraft.
4/23/12
Reasons behind merger:
Gain market power
we believe that this is the main reason for the merge as EA games was the market leader prior to the merger.
Gain economies of scale
This is also an important point as the games industry invests heavily in R&D to create technologies that can increase the customers experience by improving performance and reliability which is costly, joining forces they are able to have a high return on games launched and have a greater number of titles under their command.
Bring in-house vertically linked operations to save on dealing costs 4/23/12
Merger Process
4/23/12
Haga clic para modificar el estilo de subttulo del patrn
Stock Analysis
Flavio Longato
4/23/12
Stock Analysis Gaming Market
Announce d
Made official
4/23/12
Activision Blizzard- Income Statement
4/23/12
CEOs view on the Merger
Almudena 4/23/12
CEO of Vivendi- Lvy:
We're very committed to games. We're going to continue to invest in what's the fastest-growing segment in the entertainment industry. This gives us the financial flexibility to grow the asset. Blizzard was a bit hit, but its value was sort of hidden. As a listed company on the Nasdaq, this gives us the opportunity to attract talent [with stock options] and create a currency for further acquisitions. We'll be the majority shareholder for the long term.
CEO of Activision- Kotick:
It has been our aspiration to be the No. 1 4/23/12
Present day
4/23/12Flavio
Activision Blizzard, Inc. (ATVI)
Business Summary Activision Blizzard, Inc., through its subsidiaries, publishes online, personal computer (PC), console, and handheld games worldwide. The company develops and publishes PC-based computer games Monsters vs. Aliens and maintains itsGuitar Hero online-game proprietary X-Men Origins related service, Battle.net. It publishes PROTOTYPE interactive software products and Transformers peripherals. Its products cover various Ice Age Wolfenstein game categories. 4/23/12
Vivendi (VIV.PA)
Business Summary Vivendi engages in the creation digital content principally in France.
Activision Blizzard business.
This business primarily offers games developed for the Sony (PlayStation 2, 3, and PSP), Nintendo (Wii and DS) and Microsoft (Xbox 360) platforms.
4/23/12
Current shareholder structure
4/23/12
Q&A
4/23/12
