Gaming Merger Set
Activision Inc, owner of “Guitar Hero,” will soon be merging with another big gaming franchise once its company’s shareholders approve the plan, which is expected to happen Tuesday, July 8. Activision is set to join up with Vivendi Games (”World of Warcraft”) which will make the joint venture the largest and fastest-growing gaming corp in the world.
This news comes on the heels of latest numbers showing current game king, Electronic Arts Inc. (EA) has been slowly bleeding out. On the reverse side of the ledger, Activision is showing increased profit. For investors, the bottom line is always the — Bottom Line!
“I don’t care about who is No. 1 and 2,” Hudson Square Research analyst Daniel Ernst said. “Earnings growth is what counts for investors.”
Once the merger goes through, Vivendi will own a slight majority of the stock in the new company.
This news is over 7 months old. The merger is already done.
It was first announced almost a year ago, but the merger won’t be final until the shareholders give out their final up or down vote today (July 8, 2008). The likelihood of the shareholders voiding the merger is practically nil because they stand to make significant money with the joining of these two gaming companies.
And Activision did not create Guitar Hero, they bought the rights to it after Guitar Hero II.
Owner then. Happy now?