Vivendi is set to take control of Activision of the US through an alliance that would create the world’s biggest video games publisher and bring the hit titles World of Warcraft, Guitar Hero and Call of Duty under one corporate roof.

The French group, whose activities span recorded music, pay-TV and mobile telephony, said it planned to merge its Vivendi Games unit with Activision, a Nasdaq-listed pioneer of computer games. It would then seek to raise its stake in Activision to a maximum of about 68 per cent.