Giant publisher (Call of Duty, et al) and maker are to merge in a deal worth 18.8 billion USD (over 9 billion GBP). The game makers promise to form "the world's most profitable games business."

Blizzard's World of Warcraft currently attracts over nine million subscribers across the globe.

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Blizzard is presently owned by WoW publisher Vivendi Universal Games, and under the new agreement, Blizzard will invest some 2 billion USD, while Acti will stump up 1 billion USD.

The new company will be known as Activision Blizzard, with Acti CEO taking charge of the new group. Vivendi, meanwhile, will actually be the main shareholder in the new firm.

"This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector," commented Jean-Bernard Levy, Vivendi chief executive. "By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry."

Vivendi purchased Blizzard back in '98, and they have created games such as StarCraft, Warcraft all of which have been global hits. Activision, on the other hand, is a multi-platform, multi-title giant, who clearly feel this deal can take them to another level.

We'll bring you more on this bombshell as we get it.

By Luke Guttridge