Video Game Giants In $18bn Merger

The companies behind Call of Duty and World of Warcraft are merging in a deal which could shake up the global video games industry. Activision and Blizzard have said they will form the world''s most profitable games business in a deal worth $18.8bn (£9.15bn).

US-based Activision also makes hit console games such as the Tony Hawk series and Guitar Hero. Nine million people pay a monthly subscription to play World of Warcraft. 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.