Activision Blizzard, Inc.
Interactive Entertainment and Video Game PublishingFounded 2008- Updated January 2024
Reviewed by Swet Parvadiya
Last reviewed: January 2024
CorpDigest
Activision Blizzard, Inc.
Company History
Founded 2008 in Santa Monica, California
Last reviewed: 2024-01-15 · By Swet Parvadiya
Activision was founded in 1979 by a group of Atari programmers who had grown frustrated with Atari's refusal to credit game developers by name or share royalties proportionally. Blizzard's origins were different in almost every way. Allen Adham, Michael Morhaime, and Frank Pearce founded Silicon & Synapse in 1991, initially porting existing games to different platforms before transitioning to original development. That game launched the real-time strategy genre into mainstream gaming and established Blizzard's reputation for polish and depth that continued through StarCraft, Diablo, and World of Warcraft.
Jim Levy was the co-founder and first CEO of Activision, Inc., a position he held from the company’s inception in 1979 until 1987. Levy, along with David Crane, Larry Kaplan, Alan Miller, and Bob Whitehead—the 'Gang of Five'—left Atari in protest over the company’s policy of not crediting game developers, a move that established the concept of the independent third-party developer in the video game industry. Under Levy’s leadership, Activision released a string of hit titles for the Atari 2600, including Pitfall!, River Raid, and Kaboom!, which became some of the best-selling games of the early home console era. Levy’s marketing genius was evident in his decision to treat game designers as celebrities, featuring their names and photos prominently on game boxes and in advertisements, a practice that was unheard of at the time and helped build strong brand loyalty among consumers. He also pioneered the concept of licensing popular intellectual property for video games, securing deals for titles based on movies and TV shows. Levy was ousted as CEO in 1987 during a period of financial difficulty for the company, but his legacy as the founder of the third-party development model is foundational to the entire modern video game industry. After leaving Activision, he pursued a career in film and television production. His vision and entrepreneurial spirit laid the groundwork for the multi-billion dollar interactive entertainment industry that exists today.
Allen Adham is the co-founder of Blizzard Entertainment, having started the company in 1991 with Michael Morhaime and Frank Pearce under the name Silicon & Synapse. Adham served as the company’s Chief Design Officer and was the lead designer on many of its early hits, including Rock n’ Roll Racing, The Lost Vikings, and Warcraft: Orcs & Humans. His design philosophy, centered on the mantra 'gameplay first,' emphasized deep, balanced mechanics and polished user experiences over graphical fidelity or marketing hype, a principle that became the cornerstone of Blizzard’s reputation for quality. Adham was instrumental in the creation of the Warcraft, StarCraft, and Diablo franchises, which defined their respective genres and established Blizzard as the premier PC game developer of the 1990s and 2000s. He left Blizzard in 1999 to pursue other interests but returned in 2016 as Chief Design Officer to help revitalize the company’s development culture and guide the creation of new intellectual property. Adham officially retired from Blizzard in 2023, shortly before the Microsoft acquisition was finalized. His legacy is evident in every Blizzard game, which is characterized by meticulous attention to detail, balanced gameplay, and a deep respect for the player community. He is widely regarded as one of the most influential game designers in the history of the industry.
Jim Levy and the 'Gang of Five' former Atari programmers found Activision, the first third-party video game developer, establishing the concept of independent game development and developer credit.
Allen Adham, Michael Morhaime, and Frank Pearce found Silicon & Synapse in Irvine, California, which would later be renamed Blizzard Entertainment in 1994.
Infinity Ward, acquired by Activision in 2002, releases the first Call of Duty, which goes on to become the best-selling first-person shooter franchise in history, generating over $30 billion in lifetime revenue.
Activision, Inc. and Vivendi Games complete a merger of equals, forming Activision Blizzard, Inc., with Vivendi holding a 52% controlling stake and Bobby Kotick as CEO.
Activision Blizzard acquires King Digital Entertainment, the maker of Candy Crush, for $5.9 billion, gaining a dominant position in the mobile gaming market and completing its cross-platform trifecta.
The California Department of Fair Employment and Housing files a lawsuit alleging a pervasive 'frat boy' culture of sexual harassment and gender discrimination, triggering a major internal crisis.
Microsoft Corporation formally closes its $68.7 billion acquisition of Activision Blizzard on October 13, 2023, after a 20-month regulatory battle, dissolving the independent public company.
Blizzard Entertainment releases Diablo IV, which generates over $600 million in net bookings within its first five days, becoming the fastest-selling PC game in the company’s history.
To acquire the massively profitable Candy Crush franchise and gain a dominant, world-class mobile game development and monetization capability, completing Activision Blizzard’s cross-platform trifecta across console, PC, and mobile.
To acquire MLG’s live-streaming technology platform and its extensive library of esports event production assets to build the foundation for a dedicated esports broadcasting network, the 'ESPN of Esports.'
Activision merged with Vivendi Games (owner of Blizzard Entertainment) in July 2008 to form Activision Blizzard, creating the world's largest pure-play video game publisher at the time. Vivendi contributed Blizzard's highly profitable franchises — World of Warcraft generated roughly $1 billion annually — while Activision brought Call of Duty and Guitar Hero. The combined entity was valued at approximately $18.9 billion at the time of the deal.
Microsoft completed its $68.7 billion acquisition of Activision Blizzard in October 2023, the largest deal in gaming history. The acquisition gave Microsoft ownership of Call of Duty, World of Warcraft, Candy Crush, and Overwatch — adding approximately 400 million monthly active players to its Xbox ecosystem. The deal faced 18 months of regulatory challenges from the FTC and UK's CMA before closing.
Microsoft faced challenges from the U.S. FTC (which sought a preliminary injunction and lost), the UK's Competition and Markets Authority (which initially blocked the deal, then approved a restructured version excluding cloud gaming rights), and the EU (which approved it). Microsoft addressed concerns by licensing Call of Duty to Nintendo and cloud streaming rights to Ubisoft for 15 years before the UK CMA cleared the deal.
Activision was founded in 1979 by four Atari programmers — David Crane, Larry Kaplan, Alan Miller, and Bob Whitehead — who left Atari to form the first third-party console game developer. After near-bankruptcy in the late 1980s, Bobby Kotick acquired a controlling stake in 1991 for $440,000 and rebuilt the company through franchise acquisitions including Tony Hawk's Pro Skater (1999), Call of Duty (2003), and Guitar Hero (2005).
In July 2021, California's Department of Fair Employment and Housing filed a lawsuit against Activision Blizzard alleging systemic gender discrimination, sexual harassment, and a 'frat boy culture.' The lawsuit triggered a walkout of 1,500 Activision employees and led to CEO Bobby Kotick facing calls to resign. The company paid $18 million to settle the EEOC investigation and $54 million in a broader settlement, issues that factored into Microsoft's decision to proceed with the acquisition.