Big news from the gaming industry today. Activision and Blizzard announced they will form "world's most profitable games business" in a deal worth $18.8 billion. With 52 percent of the shares, French media firm Vivendi will be the biggest shareholder of Activision Blizzard.
Blizzard is the biggest player in online gaming and Warcraft is the global market leader of what are known as massively multi-player online role-playing games, or MMORPGs.
It is currently owned by the French media group Vivendi.
As part of the merger plan, Blizzard will invest $2bn in the new company, while Activision is putting up $1bn.
The merged business will be called Activision Blizzard and its chief executive will be Activision's current CEO Bobby Kotick. Vivendi will be the biggest shareholder in the group.
Jean-Bernard Levy, Vivendi chief executive, said: "This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector.
"By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry."
