Date: 04-18-2008
The European Commission (EC) has given a green light to the proposed merger of Vivendi’s games division with Activision. The commission accepted that the resultant new company, which will be called Activision Blizzard, will not “significantly impede effective competition in the European Economic Area or any substantial part of it.” According to the EC, the collaboration’s reach was measured on both horizontal and vertical scales. On the horizontal front, the new concern is likely to face strong competition from Electronic Arts and game console manufacturers such as Nintendo and Sony. Vertically speaking, the commission observed that Vivendi’s ownership of Universal Music Group, while advantageous in some respects, should not give rise to competition concerns. The deal, which is worth $18.9 billion, is now slated to be completed by June, effectively merging the number two and number three firms in the gaming world.
