This excerpt taken from the ATVI DEFA14A filed Dec 5, 2007.
We expect for Activisions current business, we can achieve at least $1.00 per share in pro forma, non-GAAP, diluted EPS for calendar 2009. We believe that there is at least $0.10 additional in diluted EPS to be realized in 2009 simply by Blizzard continuing to execute on its plans.
And then, when we think about capitalizing on all of the offline and online opportunities, we couldnt be more enthusiastic. And by combining Activision and Blizzard Entertainment and improving the operating performance of Sierra, there is a minimum of another $0.10 in dilutive EPS to be realized. And we estimate our 2009 combined pro forma non-GAAP EPS will be in excess of $1.20.
Clearly, both companies have proven that their strategies perform well. Our strategy going forward will be to continue what we do well and to focus on extracting greater value from the combined entity. Well continue to drive recurring franchise growth using our decentralized studio model, resulting in high operating conversions to free cash flow. Well focus on the largest markets and customers and on maintaining the operational discipline and efficiency that we are known for.
With respect to the various business lines, once we complete the transaction, well conduct a review of all underperforming assets to determine what measures will be required to ensure our investments yield returns consistent with our financial objectives. We are confident that we can deploy our processes to ensure that all of the products in our combined portfolio achieve our margin objectives.
Our proven green-light processes and our well-articulated financial objectives will ensure that this is accomplished quickly and efficiently. In short, well build on our successes, increase profitability, reduce investments in unproven business opportunities and leverage the combined scale of both of our companies. Over time, there are revenue synergies for Activision Blizzard, especially as we are able to derive the benefits for Blizzards deep knowledge of online gaming and the Korean and Chinese markets.
The Company will benefit from the subscription-based model, which means steady and predictable revenue streams and much higher operating margins. We anticipate approximately $50 million to $100 million in cost synergies that will be driven by sales and marketing, G&A and technology sharing and supply chain gains. This transaction combines leaders in mass market entertainment and subscription-based online games, making Activision Blizzard the only publisher positioned to capitalize on all offline and online opportunities.