Vivendi Games has announced it is planning to acquire a controlling stake in Activision in a deal that will merge the two companies under the new name "Activision Blizzard".

This team-up will create a massive force in gaming that analysts say will be a serious rival to Electronic Arts' position as the world’s largest independent video game publisher.

Activision primarily makes games for consoles, as gamers will know, its current franchises include the Tony Hawk skateboarding games, the Call of Duty war game series and of the moment best-seller, Guitar Hero.

Vivendi is strong with online games, like World of Warcraft, which its Blizzard Entertainment unit works on and boasts more than nine million players worldwide.

Vivendi will pay $27.50 a share and make a cash infusion of $1.7 billion to acquire a 52% stake in Activision, valuing the combined company at $18.9 billion.