Activision Thought $7M for Blizzard was "Insane"

Activision CEO Bobby Kotick says he thought $7 million USD was an "insane" price for Blizzard Entertainment when Davidson & Associates purchased Blizzard back in 1995. He describes a conversation at an dinner with Davidson & Associates where his reaction was: "Are you out of your minds? They’re like a contract developer! They have Warcraft but what else do they have? You paid SEVEN million! That’s insane!" 12 years later Activision and Blizzard merged in a deal reportedly worth $18.8 billion USD.
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Re: One of these days...
Jan 19, 2010, 18:46
28.
Re: One of these days... Jan 19, 2010, 18:46
Jan 19, 2010, 18:46
 
You knew this in 1995, before Diablo was announced? When Diablo was being made by Condor games, prior to Blizzard buying Condor in 1996?

No. I'm not saying I did, and it's not about me anyway. I'm just saying the signs of success were there pre-WoW.

How many of these companies are still around?
None, and nearly all of them. Lots of the talent that made successful games in 95 are still in the business.

How many of these companies, if you put $7 million into them in 1995, would have paid off?
Hard to say until it's done. But I wouldn't have bawked and laughed at the idea of dumping it into several on the list there. It's hard to say whether or not a company like Looking Glass would have thrived. I place the quality of their games right up there with Blizzard.

How many of these games are genres that are even profitable now?
Oh let's see, the FPS. No. Nobody plays that. Nobody likes Bungie or Halo. RPG like Jagged Alliance? No again. Games like that and Fallout 3 just don't do well. RTS's have flopped huge which is why Age of Empires was a huge non-success for Microsoft, and Starcraft II will fail in a big way. Racing and driving games? Continue to flop, no interest. Casual adventure games? Well, Myst sealed the coffin up on that genre and it's completely useless which is why they're pretty much the one of the few computer game genres places like Target and Walmart still carry -- but what do they know about making money? Complicated Flight Sims... well I'll give you that one.

And you still think Kotick is braindead for not knowing this?

Did I call him braindead, or did you just do that? Perhaps he just shouldn't have guffawed at the idea.

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