~2 minute readActivision to Acquire Infocom
As we reported last month, Activision has already acquired Creative Software and Gamestar, and the company is determined to expand further in 1986. When Activision CHairman and Chief Executive Officer James H. Levy said in January, "We also wouldn't rull out another strategic acquisition in 1986," we had no idea that it would happen so soon or involve such a major name in entertainment software as Infocom.
Exchange of Stock
The agreement in principal involves an exchange of two million shares of Activision common stock for all outstanding shares of Infocom stock. The result of this exchange will be the merging of Infocom into Activision, a transaction valued at approximately $7.5 million. The merger will not be complete until the agreement and approval of the Boards of Directors of both companies and the shareholders of Infocom is obtained. It is expected that these details will be finalized by the end of June, 1986. At that point, Infocom would keep its separate product development and marketing operations in Cambridge, Massachusetts.
Comments from Activision and Infocom
Commenting on the merger and acquisition, Levy said, "We are pleased that Infocom will be joining Activision. An important part of our long-term strategy is broadening the range of computer audiences reached by our family of products. Infocom's pioneering work in interactive fiction is enjoyed by a large and influential audience. We look forward to working with Infocom to build their position in the worldwide home computer software market." Infocom President and Chief Executive Officer, Joel M. Berez said, "We have a high regard for Activision's achievements and capabilities, especially their worldwide distribution strength, and believe that the combination of Infocom and Activision will have a significant influence in the software market.
Impact on the Consumer
What does this mean to you, the consumer of entertainment software? Initially, there will be no changes of direct importance to you. However, the merger of two creative powerhouses like Activision and Infocom is bound to mean more exciting products available in the future, particularly in the area of role-playing fantasies and adventures. We wouldn't be at all surprised to see graphics added to some interactive fiction by the Infocom authors now that they will be allied with a company that has built part of its reputation on graphic excellence. Like you, though, we'll just have to wait and see what develops from this merger.
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