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EU Gives Vivendi-Activision Deal The Thumbs Up

EU's regulatory body the European Commission gave their approval for the merger of Vivendi's games unit with California-based game developer Activision, according to VARIETY.

The nod came on Wednesday, creating a complex $9.85 billion deal that gives Vivendi a 52 percent stake in the new entity, to be named Activision Blizzard. The companies announced their intent to merge in December.

The new company will have projected annual revenues of $2.8 billion its first year and will likely become the world's largest independent game publisher, surpassing current leader Electronic Arts.

The commission said, "for all categories of game software, the combined firm would continue to face strong, effective competitors, such as Electronic Arts, and game console manufacturers such as Sony, Nintendo and Microsoft."

Activision has released popular titles around the world like GUITAR HERO and CALL OF DUTY, but has seen its growth restricted by its lack of online role-playing offerings. Vivendi subsidiary Blizzard Ent. dominates that category with its 10 million WORLD OF WARCRAFT gamers.

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