Activision is in the news once again. It is slated to combine with Vivendi’s game division to create the largest video game company in the world. This agreement places a price tag of $18.9 billion on Activision. Vivendi is a well known French conglomerate that operates in the media and entertainment spheres.

In the past many of the more popular games for Sony’s PS3 console as well as Microsofts Xbox 360 have been developed by Activision. By joining hands with Vivendi, Activision is likely to enjoy even more clout in the gaming sphere. They are likely to now strongarm into online games that are hugely popular.
Perhaps Vivendi’s most popular game is “World of Warcraft” which is an online multiplayer game with millions of paid subcribers in Asia. This, despite the widespread piracy in the region. Activisions popular games include “Tony Hawke”, “Call of Duty” and the hit “Guitar Hero” series.

According to Activision’s prolific CEO, Kotick, this merger is in response to the need for his company to fulfill the need of the millions of online multiplayers. The new company with a $3.8 billion in revenue would be larger than Electronic Arts which is at $3.1 billion in yearly revenue this year.