Activision Acquisition Legal Battle May Take Years say Experts, Splitting off Blizzard an Option

The proposed merger between Activision Blizzard and Vivendi SA that was announced in July 2008 has seen multiple legal battles since the companies sought the approval of government regulatory bodies. The parties remain hopeful that this extensive legal process may be necessary to bring the two media giants into one entity, but experts warn that the acquisition could take years to complete – with splitting off of Blizzard being a possible option.

The long-term nature of the acquisition was laid out in a recent report from the Wall Street Journal. Citing analysts and industry experts, the report claimed that the process for OK’ing the merger between Blizzard (maker of the popular Warcraft and Starcraft series) and Vivendi SA (parent company of Activision) could take up to two years. This was due to the fact that government regulators are more likely to reject deals that involve two large companies even if they could be beneficial to consumers.

The Wall Street Journal argued that if the long-term nature of the legal process is confirmed, it may limit the amount of money Vivendi could make from the deal. This is because the company had planned to raise capital from the acquisition through taking on the debt of its soon-to-be partner. Additionally, the longer it takes for the deal to go through, the more publicity it will receive and create a negative impression on the companies involved.

The possibility of splitting off Activision Blizzard’s popular Blizzard division was presented as an option by analysts and industry experts. Regions including the United States, Europe, and Australia have long been under scrutiny due to past complaints of anti-competitive practices. Splitting the two entities would help to reduce the chances of these jurisdictions standing in the way of the merger.

In conclusion, the proposed merger between Activision Blizzard and Vivendi SA could take up to two years to complete according to analysts and industry experts. This lengthy legal process could limit the amount of money Vivendi receives from the deal and create a negative image of the companies involved. As such, splitting off of Blizzard may be a possible option if it provides a regulatory solution.