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Activision Blizzard, Inc (ATVI)
Activision and Vivendi Games (Blizzard!) Merge :: WoW!
Activision and Vivendi Games (Blizzard!) Merge :: WoW!
BNW - December 2, 2007
Submitted by kspraydad (475) at 9:05AM PST on December 2, 2007
Vivendi and Activision to Create Activision Blizzard :: World's Largest, Most Profitable Pure-Play Video Game Publisher :::
Combination Brings Activision's Best-Selling Video Games, Including Guitar Hero, Call of Duty, and Tony Hawk, Together With Vivendi Games Portfolio of Leading Franchises, Including Crash Bandicoot and Spyro, and Blizzard Entertainments StarCraft, Diablo and Global #1 Subscription-Based World Of Warcraft
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2Powertrade posted on Activision Blizzard, Inc (ATVI) at 12:36PM PST on December 4, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@MasterTrader, ATVI has made some strong gains today, currently at $26.77. We are getting closer to the tender price. I guess it just took the market some time to digest the news. If the stock hits above $27.50 soon it might be worth selling now.
One reason the stock was discounted yesterday was the concern about the loss of control to Vivendi.[ Guru ] [ Level 21 ] [ Rank: 219 ]bids
2MasterTrader posted on Activision Blizzard, Inc (ATVI) at 9:17AM PST on December 3, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@Powertrade, tendering definitely appears to be the way to go if the $27.50 offer holds. The tender won't be coming til first half of 2008. The shareholders still have to approve the merger, but I'm sure there will be no problems from regulators or shareholders on this one.
Does anyone think VIV is getting the better deal here? I think the valuation of VU Games is a bit high here.[ Speaker ] [ Level 18 ] [ Rank: 613 ]bids
2Powertrade posted on Activision Blizzard, Inc (ATVI) at 7:46AM PST on December 3, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@KultofCows,t appears the market doesn't believe the valuation either. The stock hit a high of 26.70 this morning but pulled back to 25.40. I don't know how they came up with $18.8 billion, but that's too high. Definitely going to tender at $27.50 when it's offered.[ Guru ] [ Level 21 ] [ Rank: 219 ]bids
2Dictionary posted on Activision Blizzard, Inc (ATVI) at 11:31PM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!bids
2ixaarii posted on Activision Blizzard, Inc (ATVI) at 5:53PM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@kspraydad,
Gamasutra just posted an article underlining 5 key points of note in the merger. An interesting read.[ Oracle ] [ Level 20 ] [ Rank: 444 ]bids
5zukaus posted on Activision Blizzard, Inc (ATVI) at 2:50PM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@Powertrade,
Just heard the news. Congrats Powertrade, and congrats to everyone else who is long ATVI.[ Oracle ] [ Level 30 ] [ Rank: 4 ]bids
4KultofCows posted on Activision Blizzard, Inc (ATVI) at 2:08PM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@Stitch, the deal seems to value both sides at a premium. There was a lot of risk on ATVI following earnings, particularly lower than expected guidance. I was surprised the stock fell as deeply as it did (down to 19), but there is substantial risk in their 2008 numbers...so the current market valuation in the $22.50 range didn't appear that cheap in the eyes of the market. For full disclosure, I am long ATVI and have been on the basis of Guitar Hero III and Call of Duty 4.
The deal now values ATVI + Vivendi Games at $18.8 billion, with ATVI valued at $8 billion and Vivendi Games at $10.8 billion. The combined company is now valued at more than Electronic Arts (ERTS) which closed at $17.7 billion on Friday. I think the combination definitely has potential, but a valuation higher than ERTS seems a bit bullish--so I would consider the valuation to be a concern.
Next, management is still lead by Bobby Kotick, but Vivendi is taking 6 of the 11 board seats and 52% of the company. I am hoping Vivendi does not interfere with the way Kotick runs the company as Vivendi Games never really accomplished much beyond its acquisition of Blizzard. I think there is a bit of risk here that Vivendi may interfere. When Infogrames (now Atari) acquired all its properties, it ran them into the ground. As long as the management remains US based (the ATVI team), the company should stay strong.
I think historically, mergers have resulted in flat or declining stock growth. I personally am not acquiring at $27.50 and would consider the tender offer.[ Admin ]bids
1Stitch posted on Activision Blizzard, Inc (ATVI) at 10:19AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@Powertrade, I assume the stock will hit $27.50 right at open on Monday. Does anybody think this is a good time to get into the stock? Sounds like you guys are all bearish on the short-term.[ Speaker ] [ Level 18 ] [ Rank: 518 ]bids
2Powertrade posted on Activision Blizzard, Inc (ATVI) at 10:13AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@Alpha, the main value for ATVI here is Blizzard, which is a huge cash cow to fund development. I don't know if the rest of VU has IPs of great value, but the clear incentive here was Blizzard. The company is being called Activision Blizzard. Vivendi is getting 52% of the company (which is diluting ATVI shareholders significantly) and 6 of the 11 board members.
Going to have to run the math, but $27.50 (the tender) may be a good exit just on a short-term valuation but this stock will be good for a long-term run in a bull market.[ Guru ] [ Level 21 ] [ Rank: 219 ]bids
2Alpha posted on Activision Blizzard, Inc (ATVI) at 9:57AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@Powertrade, depending on the tender date, the tender may be a good choice. The weakness in the economy has been pressuring ATVI quite heavily as of late and I would not rule out any dips post the tender to get back in. Long-term, this makes ATVI a much more compelling investment. What are they getting beyond just Blizzard? What does the rest of VU Games have to offer right now?[ Guru ] [ Level 21 ] [ Rank: 173 ]bids
3Powertrade posted on Activision Blizzard, Inc (ATVI) at 9:41AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!This is totally game changing for ATVI. Been long the stock for a couple months now and rode it down to 19...should've loaded up then. I was losing confidence in the company due to a weak 2008 product line (one of the explanations for the stocks decline), but it looks like ATVI is going to pay off at $27.50. Any thoughts on tendering now or holding on?[ Guru ] [ Level 21 ] [ Rank: 219 ]bids
1MasterTrader posted on Activision Blizzard, Inc (ATVI) at 9:37AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!wow, go Pachter, he has been predicting $27.50 price target on ATVI for years and it finally happens (though not based on his assumptions). The tender offer is at $27.50, which is a great premium.
As for the headline, ATVI isn't merging with Vivendi, its only the Vivendi Games unit.[ Speaker ] [ Level 18 ] [ Rank: 613 ]bids
1lstormy10 posted on Activision Blizzard, Inc (ATVI) at 9:36AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@MasterTrader, I only doubted because I have not heard of Business Wire, but I am "doubting" Business Wire anymore because of having looked them up. (Also on a side note, just because something comes from the horse's mouth, does not mean the horse is telling the truth.)[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
3MasterTrader posted on Activision Blizzard, Inc (ATVI) at 9:33AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@lstormy10, lol we're doubting Business Wire? that's as respectable as it gets in the news world as everything is directly from the horse's mouth. Business Wire is a publishing service for press releases. This article is the original press release from Activision and Vivendi.[ Speaker ] [ Level 18 ] [ Rank: 613 ]bids
2lstormy10 posted on Activision Blizzard, Inc (ATVI) at 9:33AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@Stitch, I agree that Blizzard may not have had much success in the way of making games for consoles, but now that they have Activision's resources to help, there is an increased possibility that Blizzard will be bringing something to consoles even if it is not WOW.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
2lstormy10 posted on Activision Blizzard, Inc (ATVI) at 9:30AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@kspraydad, this is pretty big news, and thanks for the extra links to different reports on the news (I checked out the background information about Business Wire and found they were legit, just never had heard of them before). Nice find.
This is (in my opinion) larger news than when EA picked up Bioware and Pandemic. This news is quite humourous when considering what EA boss John Riccitiello said on Friday.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
6Stitch posted on Activision Blizzard, Inc (ATVI) at 9:27AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@lstormy10, wow this is huge news. Business Wire is as credible as it gets as these are press releases from the companies.
This doesn't increase the likelihood a Blizzard game is on console at all. Blizzard has been trying to break into console for years. They have been making GBA games for a long time. They were working on Starcraft: Ghost for years which was going to be exclusive for consoles, but it fell through, likely because the Xbox was no longer popular and the game wasn't even ready (Blizzard games take a long time to develop, so a console cycle could be over by the time they are ready to put the game out).
Starcraft came out for the N64 and it was a flop. Blizzard has said they have no intention to port WoW to consoles because the game play would suffer, not because they don't know how to make console games.[ Speaker ] [ Level 18 ] [ Rank: 518 ]bids
3kspraydad posted on Activision Blizzard, Inc (ATVI) at 9:24AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@lstormy10,
Oh, it is true. Check here too.
Or here.
I will be changing the title of the Article though as it seems Vivendi will have a 52% controlling interest.[ Oracle ] [ Level 21 ] [ Rank: 475 ]bids
3lstormy10 posted on Activision Blizzard, Inc (ATVI) at 9:20AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@kspraydad,
If this news is true (I do not know what the respectability of Business Wire is - kspraydad?), then there is a possibility that future Blizzard titles will be coming to consoles. I do not see why they would not want to bring WOW to consoles because it is a perfect opportunity to target an even larger audience and accumulate more sales and more money. I doubt that StarCraft 2 would come to consoles because of the nature of its genre and not transfering the best to a platform without keyboard and mouse control (though it would be awesome if they brought it to Wii, but the only thing that would hold it back is maybe graphics - but that could be overcome).
This news is pretty bold for Activision and seeing how Blizzard is making a killing right now, I would expect Activision's stock to rise.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
1kspraydad posted on Activision Blizzard, Inc (ATVI) at 9:11AM PST on December 2, 2007. RE: Activision and Vivendi Games (Blizzard!) Merge :: WoW!@kspraydad,
Is this a step to bringing WOW etc to the consoles (where Activision is strong)?
Seems like more and more MMO interest in consoles is coming with Sony's STATION initiative and agreement with NCSoft.[ Oracle ] [ Level 21 ] [ Rank: 475 ]bids
47kspraydad posted on Activision Blizzard, Inc (ATVI) at 9:05AM PST on December 2, 2007. Article: Activision and Vivendi Games (Blizzard!) Merge :: WoW!Vivendi and Activision to Create Activision Blizzard :: World's Largest, Most Profitable Pure-Play Video Game Publisher ::: Combination Brings Activision's Best-Selling Video Games, Including Guitar Hero, Call of Duty, and Tony Hawk, Together With Vivendi Games Portfolio of Leading Franchises, Including Crash Bandicoot and Spyro, and Blizzard Entertainments StarCraft, Diablo and Global #1 Subscription-Based World Of Warcraft[ Oracle ] [ Level 21 ] [ Rank: 475 ]
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We should be able to hold to the tender if the Fed cuts rates next week and we get the Santa Clause rally--however, I'm sure there will be a lot of profit taking by year's end.