This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Activision Takes on a Mega-Merger

SAN FRANCISCO -- Video-games publisher Activision's (ATVI - Get Report) blowout fourth-quarter result has crowned the company the star of the industry but the company's biggest challenge lies ahead.

Over the next few weeks, Activision hopes to close its merger with Vivendi Games that will create a new $18.8 billion entity called Activision Blizzard.

The challenge for Activision will be to integrate the two companies successfully and leverage the opportunities available to the combined entity without changing their creative structure, says Thomas Tippl, the company's chief financial officer.

"Going into the merger we are very aware that the odds are stacked against you," said Tippl in an interview with TheStreet.com. "But what is different is this case we are combining two best companies in the business."

Activision announced in December its plans to combine with Vivendi Games which includes Blizzard Entertainment and its biggest multi-player online role-playing game, World of Warcraft to create a new company.

Activision decided to court Vivendi because of its strong presence in online games. The two companies talked for more than six months before deciding to merge. According to Activision, the new entity -- Activision Blizzard --would have about $3.8 billion in combined calendar 2007 revenue and among the highest operating margins in the industry.

Tippl said it is a rare merger where both companies are coming from a position of strength. "We don't have business problems to fix here," he said. "We have two very fast growing, profitable business and we have to continue to execute the strategies that are working for us."

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ATVI $22.80 0.00%
DW $59.24 0.00%
MSFT $41.62 0.00%
SNE $30.01 0.00%
THQ $21.17 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs