Editing Activision (section)

=== Growth and acquisitions (1997–2008) ===
[[File:Activisionheadquarters.jpg|thumb|right|Former Activision headquarters in Santa Monica in 2008]]
With several of its own successfully developed games helping to turn a profit, Kotick led Activision to start seeking acquisitions of video game development studios, guided by market surveys to determine what areas of content to focus on.<ref name="mw" /> It is estimated that between 1997 and 2008, Activision made 25 acquisitions, several for undisclosed amounts. Several of these came prior to 2001, in the midst of the [[Dot-com bubble]], enabling the company to acquire studios at a lower valuation.<ref name="mw" /> On June 16, 2000, Activision reorganized as a [[holding company]], Activision Holdings, to manage Activision and its subsidiaries more effectively.<ref name="Activision Holding">{{cite web |url=https://www.activision.com/investor/pressreleases/218.html |title=Activision Announces New Holding Company Reorganization |first1=Maryanne |last1=Lataif |first2=Kristin |last2=Mulvihill |date=June 16, 2000 |website=Activision |archive-url=https://web.archive.org/web/20010107203700/http://www.activision.com/investor/pressreleases/218.html |archive-date=January 7, 2001 |url-status=unfit}}</ref> Activision changed its corporate name from "Activision, Inc." to "Activision Publishing, Inc.", while Activision Holdings took Activision's former "Activision, Inc." name.<ref name="Activision Holding" /> Activision Publishing became a wholly owned subsidiary of Activision, which in turn became the publicly traded company, with all outstanding shares of capital stock converted.<ref name="Activision Holding" /><ref name="pcgamer hirshberg">{{cite web |url=https://www.pcgamer.com/activision-publishing-ceo-eric-hirshberg-is-leaving-the-company/ |title=Activision Publishing CEO Eric Hirshberg is leaving the company |first=Andy |last=Chalk |date=January 18, 2018 |access-date=January 18, 2018 |work=[[PC Gamer]] |archive-url=https://web.archive.org/web/20180119072905/http://www.pcgamer.com/activision-publishing-ceo-eric-hirshberg-is-leaving-the-company/ |archive-date=January 19, 2018 |url-status=live}}</ref>

Some of the key acquisitions and investments made by Activision in this period include:
* [[Raven Software]]: Raven was founded in 1990; because of their close proximity, Raven frequently collaborated with [[id Software]], and one of the studio's early successes was the ''[[Heretic (video game)|Heretic]]'' series using id's [[Doom engine]]. Around 1997, Raven's founders Brian and Steve Raffel felt the need to seek a parent company. They arranged a publishing deal with Activision in 1997, which not only served to provide Raven additional financial support, but also gave Activision the opportunity to work closely with id Software and gain business relationships with them.<ref>{{cite web |title=From Dungeon & Dragons to Call of Duty: The Story of Raven Software |url=https://www.usgamer.net/articles/raven-software |website=USgamer.net |date=October 28, 2014 |access-date=February 15, 2016 |archive-url=https://web.archive.org/web/20170827165702/http://www.usgamer.net/articles/raven-software |archive-date=August 27, 2017 |url-status=live}}</ref> By the end of 1997, Activision acquired Raven as one of its first subsidiaries under Kotick.<ref>{{cite web |url=https://variety.com/1997/biz/news/activision-set-to-acquire-raven-1116676216/ |title=Activision set to acquire Raven |first=Paul |last=Karon |date=August 8, 1997 |access-date=February 14, 2019 |work=[[Variety (magazine)|Variety]] |archive-url=https://web.archive.org/web/20190214233438/https://variety.com/1997/biz/news/activision-set-to-acquire-raven-1116676216/ |archive-date=February 14, 2019 |url-status=live}}</ref> The acquisition price was $12 million.<ref>{{cite web|first=Karen|last=Kaplan|url=https://www.latimes.com/archives/la-xpm-1997-aug-07-fi-20136-story.html|title=Activision to Expand Game Lineup with Raven Purchase|newspaper=[[Los Angeles Times]]|date=August 7, 1997|accessdate=August 17, 2021|archive-date=December 31, 2022|archive-url=https://web.archive.org/web/20221231050732/https://www.latimes.com/archives/la-xpm-1997-aug-07-fi-20136-story.html|url-status=live}}</ref>
* [[Neversoft]]: Prior to its acquisition in 2000, Activision had arranged a development deal with Neversoft to re-develop ''[[Apocalypse (video game)|Apocalypse]]'', a title that failed to be completed within Activision. Subsequently, Activision had Neversoft work on a prototype for a [[skateboard]]ing game, which became the first in the ''[[Tony Hawk's (series)|Tony Hawk's]]'' series of skateboarding video games. ''[[Tony Hawk's Pro Skater]]'' was a critical success, leading Activision to acquire Neversoft in April 2000.<ref>{{cite web |url=https://www.gamespot.com/articles/activision-acquires-neversoft/1100-2448473/ |title=Activision Acquires Neversoft |first=Sam |last=Kennedy |date=April 27, 2000 |access-date=February 13, 2019 |work=[[GameSpot]] |archive-url=https://web.archive.org/web/20190214002759/https://www.gamespot.com/articles/activision-acquires-neversoft/1100-2448473/ |archive-date=February 14, 2019 |url-status=live}}</ref> After eight games, the series has brought in {{USD|1.6 billion|long=no}}.<ref name="forbes kotick" />
* [[Infinity Ward]]: After [[Electronic Arts]] released ''[[Medal of Honor: Allied Assault]]'' in 2002, several of the developers from [[2015, Inc.]], disenchanted with their current contracts, left to form a new studio, Infinity Ward. Kotick himself provided the group with startup funding, as they were seeking to develop a similar title to ''Medal of Honor''. Activision acquired the studio for {{USD|5 million|long=no}} in January 2003, and later publish their first title, ''[[Call of Duty (video game)|Call of Duty]]'', directly competing with Electronic Arts.<ref name="forbes kotick" /> The ''[[Call of Duty]]'' series has since seen nearly yearly releases and as of 2016 had sold more than 250 million units and brought in more than {{USD|12 billion|long=no}} in revenue.<ref>{{cite web |url=https://www.businesswire.com/news/home/20160211006451/en |title=Activision Blizzard Announces Fourth Quarter and Full Year 2015 Financial Results |publisher=[[Business Wire]] |date=February 11, 2016 |access-date=December 7, 2016 |archive-url=https://web.archive.org/web/20161220082153/http://www.businesswire.com/news/home/20160211006451/en |archive-date=December 20, 2016 |url-status=live}}</ref>
* [[Treyarch]]: The Santa Monica, California studio was founded in 1996. With the success of the first ''Tony Hawk'' game from Neversoft, Activision used Treyarch to assist in further ''Tony Hawk'' games as well as to develop titles using Activision's license of [[Marvel Comics|Marvel]]'s [[Spider-Man]]. Activision acquired the studio in 2001 for about {{USD|20 million|long=no}}.<ref>{{cite news |url=https://www.latimes.com/archives/la-xpm-2001-oct-04-fi-53391-story.html |title=Activision to Acquire Treyarch Invention |date=October 4, 2001 |access-date=February 14, 2019 |agency=[[Reuters]] |via=[[Los Angeles Times]] |archive-url=https://web.archive.org/web/20160301163903/http://articles.latimes.com/2001/oct/04/business/fi-53391 |archive-date=March 1, 2016 |url-status=live}}</ref>  Following the success of ''Call of Duty'' from Infinity Ward, Activision moved Treyarch to assist in the series' development, trading off each year' major release between the two studios.
* [[Gray Matter Studios]]: While Gray Matter was originally founded in 1993 as Xatrix Entertainment, it was rebranded to Gray Matter in 1999 as they began work on ''[[Return to Castle Wolfenstein]]'', in conjunction with [[Nerve Software]] and oversight by id Software who owned the ''Castle Wolfenstein'' IP. Activision, the game's publisher, acquired a portion of Gray Matter's stock during this time. ''Return to Castle Wolfenstein'' was a critical and financial success, and led Activision to acquire the remaining shares of Gray Matter in 2002 for about {{USD|3.2 million|long=no}},<ref>{{cite web |url=https://www.wsj.com/articles/SB1011018184632447240 |title=Activision Acquires Rest Of Gray Matter Interactive |date=January 14, 2002 |access-date=February 14, 2019 |work=[[The Wall Street Journal]] |archive-url=https://web.archive.org/web/20180613085929/https://www.wsj.com/articles/SB1011018184632447240 |archive-date=June 13, 2018 |url-status=live}}</ref> with the intent to help Infinity Ward expand out the ''Call of Duty'' franchise. In 2005, Activision made the decision to merge the smaller Gray Matter into the larger Treyarch to put their combined talents towards ''Call of Duty 3''.<ref>{{cite web |url=https://www.polygon.com/2018/5/8/17316562/call-of-duty-black-ops-zombies-treyarch-interview |title=Meet the studio behind Call of Duty: Black Ops and Zombies mode |first=Charlie |last=Hall |date=May 8, 2018 |access-date=February 14, 2019 |work=[[Polygon (website)|Polygon]] |archive-url=https://web.archive.org/web/20180630052949/https://www.polygon.com/2018/5/8/17316562/call-of-duty-black-ops-zombies-treyarch-interview |archive-date=June 30, 2018 |url-status=live}}</ref>
* [[RedOctane]]: Around 2005, Red Octane was co-developing ''[[Guitar Hero]]'', a console game based on the arcade game ''[[GuitarFreaks and DrumMania|GuitarFreaks]]'', with [[Harmonix]]; Harmonix was developing the software while RedOctane developed the instrument controllers. ''Guitar Hero'' was a major success. Activision purchased RedOctane for nearly {{USD|100 million|long=no}} in June 2006. The series has since earned more than {{USD|2 billion|long=no}} in revenues.<ref name="forbes kotick" />
* [[Toys for Bob]]: Toys for Bob was founded by [[Paul Reiche III]], [[Fred Ford (programmer)|Fred Ford]], and Terry Falls in 1989 and gained success in developing the first two ''[[Star Control]]'' games, and later made film-to-video game adaptions. Activision purchased the studio in 2005, and had given them work on some of the ''Tony Hawk's'' games as well as other licensed properties.<ref>{{cite web |url=https://www.ign.com/articles/2005/05/03/activision-buys-toys-for-bob |title=Activision Buys Toys for Bob |first=David |last=Adams |date=May 3, 2005 |access-date=March 2, 2019 |work=[[IGN]] |archive-url=https://web.archive.org/web/20190306044722/https://www.ign.com/articles/2005/05/03/activision-buys-toys-for-bob |archive-date=March 6, 2019 |url-status=live}}</ref> Following Activision's merger with Vivendi, Activision gained the ''[[Spyro]]'' intellectual property and assigned Toys for Bob to develop the series in a new direction, leading to the [[toys-to-life]] ''[[Skylanders]]'' series.<ref>{{cite web |url=https://venturebeat.com/2012/10/05/how-paul-reiche-turned-activision-into-a-giant-toy-company-with-skylanders-interview/ |title=How Toys for Bob turned Activision into a giant toy company with Skylanders |first=Dean |last=Takahashi |date=October 5, 2012 |access-date=March 2, 2019 |work=[[Venture Beat]] |archive-url=https://web.archive.org/web/20190306111558/https://venturebeat.com/2012/10/05/how-paul-reiche-turned-activision-into-a-giant-toy-company-with-skylanders-interview/ |archive-date=March 6, 2019 |url-status=live}}</ref>