Activision, Inc. (Nasdaq: ATVI) announced today that the company has exercised its option to acquire the remaining 70% of outstanding common stock in Infinity Ward.

The acquisition of Infinity Ward, combined with Activision's Raven Software, solidifies the company's industry leading position as a developer, publisher and distributor of first-person action games.

"This acquisition is aligned with Activision's strategy to acquire companies with a history of creating high-quality products which over time can enhance the company's financial operating model," stated Ron Doornink, President and CEO, Activision Publishing, Inc. "Infinity Ward has a very talented team of programmers, designers and artists, many of whom were members of the team that developed Medal of Honor Allied Assault, one of the most acclaimed PC games of last year. We are confident that this studio's development strengths will further establish Activision as a leader in the PC action genre."

Industry veterans Grant Collier, Vince Zampella and Jason West each have signed a long-term employment contract with Activision and will continue to manage Infinity Ward. Additionally, key employees also have signed long-term employment contracts with Activision.

Under the terms of the agreement, Infinity Ward became a wholly owned subsidiary of Activision.