Vivendi and Activision have announced the completion of the transaction to create Activision Blizzard, “the world's most profitable pure-play online and console game publisher”.

The deal sees Activision combined with Vivendi Games, Vivendi's interactive entertainment business, and franchises including Guitar Hero, Call of Duty, World of Warcraft and Diablo put under the same umbrella.

"The completion of this transaction marks the beginning of an important new chapter in the history of interactive entertainment," said Bobby Kotick, president and CEO of Activision Blizzard.

"By combining leaders in mass-market entertainment and subscription-based online games, Activision Blizzard has leading market positions across all categories of the rapidly growing interactive entertainment software industry.”

Vivendi CEO Jean-Bernard Levy added, "We have created the world leader in online and console games with this transaction and the combined strengths of the two businesses offer immense growth potential.”

 “I am also very confident that, with the new leadership team in place, the new entity is perfectly positioned to take advantage of these rapidly developing markets across the globe."

Activision Blizzard will operate as a public company traded on Nasdaq under the ticker ATVI.

A planned merger of Activision and Vivendi Games was first announced back in December 2007. Earlier this week Activision stockholders approved the deal.