Vivendi will own 52 percent of the new company, which is expected to generate revenues of US$3.8 billion for the year.
Activision Blizzard will incorporate a number of popular titles under one umbrella, including Guitar Hero, Call of Duty, Tony Hawk's skateboarding games and World of Warcraft.
The new company would rival the dominance of Electronic Arts, currently the world's biggest games publisher.
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