LOS ANGELES, Dec. 2 (UPI) -- Vivendi of France will acquire a 52 percent stake in Activision Inc. for $9.8 billion, in a deal that will result in the world's largest video game company.
Vivendi will pay $1.7 billion in cash and contribute its Southern California game business, valued at $8.1 billion, to acquire controlling interest in Activision, The Los Angeles Times reported Sunday.
The deal will create a combined business -- to be named Activision Blizzard -- that will be the world's largest video game company, worth an estimated $18.9 billion, the companies announced.
Activision Blizzard would remain a public company, run by its current chief executive, Bobby Kotick, the Times reported.
The merger would bring blockbuster video game franchises including "Guitar Hero," "World of Warcraft" and "Call of Duty" into one corporate entity. The new company would be bigger than the current industry leader, Electronic Arts Inc., which is worth an estimated $17.7 billion, the newspaper said.
