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	Title: Activision to Acquire Infocom
	Source: Computer Entertainer
	Date: March 1986
	Transcription by Steve Derby
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As we reported last month, Activision has already acquired
Creative Software and Gamestar, and the company is determined
to expand further in 1986. When Activision CHairman and Chief
Executive Officer James H. Levy said in January, "We also
wouldn't rull out another strategic acquisition in 1986," we had
no idea that it would happen so soon or involve such a major
name in entertainment software as Infocom.

## Exchange of Stock

The agreement in principal involves an exchange of two million
shares of Activision common stock for all outstanding shares of
Infocom stock. The result of this exchange will be the merging of
Infocom into Activision, a transaction valued at approximately
$7.5 million. The merger will not be complete until the agreement
and approval of the Boards of Directors of both companies and
the shareholders of Infocom is obtained. It is expected that these
details will be finalized by the end of June, 1986. At that point,
Infocom would keep its separate product development and
marketing operations in Cambridge, Massachusetts.

## Comments from Activision and Infocom

Commenting on the merger and acquisition, Levy said, "We are
pleased that Infocom will be joining Activision. An important part
of our long-term strategy is broadening the range of computer
audiences reached by our family of products. Infocom's
pioneering work in interactive fiction is enjoyed by a large and
influential audience. We look forward to working with Infocom
to build their position in the worldwide home computer software
market." Infocom President and Chief Executive Officer, Joel M.
Berez said, "We have a high regard for Activision's achievements
and capabilities, especially their worldwide distribution strength,
and believe that the combination of Infocom and Activision will
have a significant influence in the software market.

## Impact on the Consumer

What does this mean to you, the consumer of entertainment
software? Initially, there will be no changes of direct importance
to you. However, the merger of two creative powerhouses like
Activision and Infocom is bound to mean more exciting products
available in the future, particularly in the area of role-playing
fantasies and adventures. We wouldn't be at all surprised to see
graphics added to some interactive fiction by the Infocom authors
now that they will be allied with a company that has built part of
its reputation on graphic excellence. Like you, though, we'll just
have to wait and see what develops from this merger.
