Rumors Swirl Around Microsoft, Vivendi Game Unit

Like undead creatures in the video game WarCraft, it's the rumor that just won't die: French media conglomerate Vivendi(V Quote) is said to be chatting up Microsoft(V Quote) in a deal to sell off its video-game publishing unit.

Debt-strapped Vivendi has been rumored to be seeking a buyer for the publisher of games including Warcraft and Diablo as far back as last year, when its chief executive, Jean Marie Messier, was ousted. This week, the rumor resurfaced, and centered on Microsoft, as Vivendi has been gearing up to sell off chunks of the company to pare down debt.

Microsoft, meanwhile, may looking to bolster its lineup of games to justify its multibillion-dollar investment in video games for its game console, the Xbox, and for its online division, Xbox Live. The company also has been linked to potential acquisitions of Japanese game publishers Sega and Namco, as well as Activision(ATVI Quote), in recent months. Fueling recent rumors was the departure of Sega's North American chief, Peter Moore. Microsoft tapped Moore to be corporate vice president in charge of sales and marketing in Europe and Japan for the Xbox and PC games divisions. ...