They Create WorldsTHEY CREATE WORLDS

Vivendi Electric Boogaloo

Episode 260

CompanyVivendiActivisionBlizzardUniversal

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Summary

How does a Canadian liquor company end up owning Universal Studios and, eventually, help create Activision Blizzard? Seagram chased diversification as liquor sales softened, tried to take over Conoco, and instead wound up with a 25% stake in DuPont that generated most of its earnings. Edgar Bronfman Jr. sold that stake to buy MCA from Matsushita, inheriting a mismanaged Universal. He then doubled down on music with a $10.6 billion PolyGram deal just as Napster, the dot com bubble, and changing listening habits blew up the old record business model. With media stocks riding high, the rest of the Bronfman family wanted out, and Jean-Marie Messier at Vivendi stepped in, using Canal+ and an all‑stock transaction to fold Seagram into Vivendi and create Vivendi Universal. On the games side, Havas Interactive and the former CUC and Cendant software assets were combined with Universal’s own games business, including the franchises of Crash Bandicoot and Spyro the Dragon, under a new label: Vivendi Universal Games. Then the bubble burst, Vivendi’s debt and deceptive cash accounting caught up with Messier, and he was forced out, leaving his successors to sell assets and manage the fallout. Inside the games group, Blizzard’s success defined the division, culminating in World of Warcraft’s launch and the later decision to combine Vivendi’s games business with Activision. That deal created Activision Blizzard, gave Vivendi a way to tap cash when its telecom business went bad, and set the stage for Activision Blizzard's eventual separation from Vivendi. Vivendi made one last, mostly unsuccessful push into games through moves on Ubisoft and the takeover of Gameloft.

Show Notes

TCW 064 - Rise and Fall of Infogrames Part 1: https://www.theycreateworlds.com/episodes/TCW064-rise-and-fall-of-infogrames-part-1
TCW 065 - Rise and Fall of Infogrames Part 2: https://www.theycreateworlds.com/episodes/TCW065-the-rise-and-fall-of-infogrames-part-2
TCW 114 - The Wizards of Sir-Tech: https://www.theycreateworlds.com/episodes/TCW114-the-wizards-of-sir-tech
TCW 115 - The Return of the Sdraziw of Sir Tech: https://www.theycreateworlds.com/episodes/TCW115-the-return-of-the-sdraziw-of-sir-tech
TCW 251 - Virgin Games: https://www.theycreateworlds.com/episodes/TCW251-virgin-games
TCW 184 - A Very Naughty Dog Pt 1: https://www.theycreateworlds.com/episodes/TCW184-a-very-naughty-dog-pt-1
TCW 185 - A Very Naughty Dog Pt 2: https://www.theycreateworlds.com/episodes/TCW185-a-very-naughty-dog-pt-2
Spyro the Dragon (PSX): https://www.youtube.com/watch?v=lrVKjNR0-SE
Crash Bandicoot (PSX): https://www.youtube.com/watch?v=9HtPF0ers1w
TCW 162 - Spinnaker Software: https://www.theycreateworlds.com/episodes/TCW162-spinnaker-software
TCW 071 - A Story of Brøderbund: https://www.theycreateworlds.com/episodes/TCW071-a-story-of-broderbund
TCW 072 - The Mysteries of Brøderbund: https://www.theycreateworlds.com/episodes/TCW072-the-mysteries-of-broderbund
TCW 039 - On-Line Systems: https://www.theycreateworlds.com/episodes/TCW039-on-line-systems
TCW 040 - Sierra On-Line: https://www.theycreateworlds.com/episodes/TCW040-sierra-on-line
TCW 221 - North to Hellgate London: https://www.theycreateworlds.com/episodes/TCW221-north-to-hellgate-london
TCW 249 - New World Computing: https://www.theycreateworlds.com/episodes/TCW249-new-world-computing
TCW 055 - Blizzard Hellfire and the World of Warcraft: https://www.theycreateworlds.com/episodes/TCW055-blizzard-hellfire-and-the-world-of-warcraft
Play Nice: The Rise, Fall, and Future of Blizzard Entertainment: https://www.amazon.com/Play-Nice-Future-Blizzard-Entertainment/dp/1538725428
Disney's Dreamlight Valley: https://www.youtube.com/watch?v=dOuZFZOVLmc

New episodes are on the 1st and 15th of every month!

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Alex's Video Game History Blog: http://videogamehistorian.wordpress.com
Alex's book: http://bit.ly/TCWBOOK1

Intro Music: Josh Woodward - Airplane Mode - Music - "Airplane Mode" by Josh Woodward. Free download: http://joshwoodward.com/song/AirplaneMode
Outro Music: RoleMusic - Bacterial Love: http://freemusicarchive.org/music/Rolemusic/Pop_Singles_Compilation_2014/01_rolemusic_-_bacterial_love

Copyright: Attribution: http://creativecommons.org/licenses/by/4.0/