Last modified on Tuesday, 04 December 2007 03:52
Activision and Blizzard are to set up a joint company in a deal worth $18.8 billion.
Activision makes hit console games such as the Tony Hawk series and Guitar Hero, while Blizzard is famous for its World of Warcraft series. It is currently owned by the French media group, Vivendi. 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. The idea is that the companies will form a business which is powerful on every gaming platform and in every territory.