Activision 2008 Annual Report Download - page 112

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98
EXPLANATORY NOTE
On July 9, 2008, a business combination (the “Business Combination”) by and among
Activision, Inc., Sego Merger Corporation, a wholly-owned subsidiary of Activision, Inc.,
Vivendi S.A., (“Vivendi”), VGAC LLC, a wholly- owned subsidiary of Vivendi S.A., and Vivendi
Games, Inc. (“Vivendi Games”), a wholly-owned subsidiary of VGAC LLC, was consummated. As
a result of the consummation of the Business Combination, Activision, Inc. was renamed
Activision Blizzard, Inc. For accounting purposes, the Business Combination is treated as a
“reverse acquisition,” with Vivendi Games, Inc. deemed to be the acquirer. The historical
financial statements of Activision Blizzard, Inc. prior to July 9, 2008 are those of Vivendi
Games, Inc. (see Note 1 of the Notes to Consolidated Financial Statements included in this Annual
Report).
CAUTIONARY STATEMENT
This Annual Report contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements consist of any statement other
than a recitation of historical fact and include, but are not limited to: (1) projections of revenues,
expenses, income or loss, earnings or loss per share, cash flow projections, merger integration
and cost savings or other financial items; (2) statements of Activision Blizzard’s plans and
objectives, including those relating to product releases; (3) statements of future economic
performance; and (4) statements of assumptions underlying such statements, including statements
about expected industry and general economic trends. Activision Blizzard generally uses words
such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "future," "intend,"
"may," "outlook," "plan," "positioned," "potential," "project," "remain," "scheduled," "set to,"
"subject to," "to be," "upcoming," "will," and other similar expressions to help identify forward-
looking statements. Forward-looking statements are subject to business and economic risk, reflect
management's current expectations, estimates and projections about Activision Blizzard’s
business, and are inherently uncertain and difficult to predict. Factors that could cause Activision
Blizzard’s actual future results to differ materially from those expressed in the forward-looking
statements contained in this Annual Report include, but are not limited to, sales levels of
Activision Blizzard's titles, shifts in consumer spending trends, the impact of the current
macroeconomic environment, the seasonal and cyclical nature of the interactive game market,
Activision Blizzard's ability to predict consumer preferences among competing hardware
platforms (including next-generation hardware), declines in software pricing, product returns and
price protection, product delays, retail acceptance of Activision Blizzard's products, adoption rate
and availability of new hardware and related software, industry competition, rapid changes in
technology and industry standards, protection of proprietary rights, litigation against Activision
Blizzard, maintenance of relationships with key personnel, customers, vendors and third-party
developers, counterparty risks relating to customers, licensees, licensors and manufacturers,
domestic and international economic, financial and political conditions and policies, foreign
exchange rates, integration of recent acquisitions and the identification of suitable future
acquisition opportunities, Activision Blizzard's success in integrating the operations of Activision
and Vivendi Games in a timely manner, or at all, and the combined Company's ability to realize
the anticipated benefits and synergies of the transaction to the extent, or in the timeframe,
anticipated, and the other factors identified in the risk factors section of our Annual Report on
Form 10-K for the year ended December 31, 2008. Forward-looking statements believed to be
true when made may ultimately prove to be incorrect. These statements are not guarantees of the
future performance of Activision Blizzard. Activision Blizzard disclaims any obligation to update
any forward-looking statements contained herein.