Vivendi is a large French conglomerate involved in media and telecommunications. It owns 61% of Activision Blizzard, the publisher of the popular Skylanders Giants video game. As part of the same corporate structure, Activision Blizzard studios benefit from synergies in co-developing and publishing Skylanders. Vivendi's other business interests in music, television, and publishing can also promote and support the game. The conglomerate structure allows profits and resources to be shared across Vivendi's many subsidiaries.

1. Big Business: The world of the
conglomerate in the gaming market

2. What is a conglomerate?
A conglomerate is a combination of companies
that are made up of different divisions, each
with distinct identities operating in different
sectors of the market – and possibly different
industries altogether. They are often formed
through mergers or acquisitions.

3. Advantages of a conglomerate?
• Diversification results in reduction of
investment risk – a good year in a
corporation’s games division may offset a poor
year in a corporation’s movie division!
• Synergy created between divisions eg.
Time Warner includes several linked businesses
such as internet access, content, film, cable
systems and television. This allows cross-
promotion and economies of scale.

4. • Vivendi is a French multinational mass media and
telecommunication company based in Paris.
• The company has activities in:
• Music
• Television and film
• Publishing
• Telecommunications
• the internet
• ….. And videogames

5. • Vivendi is a French multinational mass media and
telecommunication company based in Paris.
• Although you may not have heard of Vivendi, you
may have heard some of the assets the firm
owns:
• Canal+ Group (TV Channels)
• Universal Music Group
• Vivendi Entertainment
• Maroc Telecom
• ….And 61% of Activision Blizzard

6. • Activision and Blizzard Entertainment are
subsidiaries of Activision Blizzard.

7. • Activision is an American
video game publisher and
is now one of the largest
third party video game
publishers in the world.
• Activision still develop and
publish games such as Call
of Duty, Crash Bandicoot,
Spyro the Dragon and
Prototype (Vivendi owns
the IP to all of these
franchises)

8. • Blizzard Entertainment is a
video game developer and
publisher responsible for
several successful games
including Starcraft, Diablo and
the MMORPG – Massive
Multiplayer Online Roleplaying
Game – World of Warcraft
• This subscription based title
can earn Blizzard over $1 billion
annually.

9. • Activision own a number
of subsidiaries of their
own – to ensure they can
benefit from vertical
integration: enjoying
advantages of owning
firms at every stage in the
games making process.

10. • The following studios are owned by Activision:
• Developers:
• Beenox (developed The Amazing Spider-Man)
• Demonware (Developed software to assist
matchmaking in Call of Duty)
• High Moon Studios (Transformers series of Xbox/PS3
games)
• Infinity Ward (developed Call of Duty Modern Warfare
series)
• Toys for Bob (Developed Spyro/Skylanders series and
Tony Hawk games)
• Treyarch (Developed Call of Duty Black Ops series)
• Neversoft (developed Guitar Hero series)

11. Skylanders Giants and the role of the
conglomerate
• Skylanders Giants is
developed by Toys for Bob
and published by Activision
• Both of these companies are
part of the same
conglomerate so will both
receive a synergy boost in
working together, as opposed
to an outside company.

12. Skylanders Giants and the role of the
conglomerate
• Their parent company Vivendi
has a number of business
interests that could aid the
release of Skylanders Giants.
• The game could be well
supported from Vivendi’s
Canal+ group of TV channels
through promotion and
marketing.

13. Skylanders Giants and the role of the
conglomerate
• Vivendi owns the Universal
Music Group – one of the largest
music publishing companies in
the world
• As you have seen in past lessons,
many games release spin-off
merchandise such as music
soundtracks:
• Who is to bet that Activision
Blizzard owners Vivendi would
not use Universal’s expertise and
vast experience in this field to
produce, market and release
Skylanders Giant: The Official
Soundtrack?

14. Task:
• Draw a conglomerate map showing how a
French company working out of Paris, Vivendi,
is linked with – and profiting from! – kids
game Skylanders Giants.
• You can use any program to do this but you
must Blog your map so you may have to take a
screenshot of your map if you using another
program.

15. Example:
Faceless
conglomerate
inc.
Howard
holding
company
Howard Games Howard Movie Howard
Publishers Magazine Howard Umbrella
Publishers Manufacturers
Publishers
Howard Games
Developer
Release of Return of
the Media Teacher
on PS3 and Xbox

16. Task:
• Draw a conglomerate map showing how a
French company working out of Paris, Vivendi,
is linked with – and profiting from! – kids
game Skylanders Giants.
• You can use any program to do this but you
must Blog your map so you may have to take a
screenshot of your map if you using another
program.
• If you finish, draw a conglomerate map for Grand Theft Auto
4 or 5 – Homework to complete both of these tasks for next
lesson. Also, read the latest announcements about GTA5 in
time for Thursday!