Monolithic publisher EA has today announced an agreement with Elevation Partners to purchase VG Holding Corp. -- a move which sees EA becoming the owner of both BioWare Corp. and Pandemic Studios. A shocking move to be certain, but one that should make complete sense to a publisher looking to strengthen its lineup of role-playing games and action titles. BioWare, currently finishing development on November's Microsoft-published Mass Effect, has proven itself to be one of the leading developers in the genre, and Pandemic Studios' Mercenaries franchise has shown an alarming propensity for blowing things up.
Closing January 2008, the purchase will cost EA up to $620 million in cash payment to the stockholders of VG Holding Corp., with another $155 million in equity going to "certain employees" of VG Holding Corp., "subject to time-based or performance-based vesting criteria." EA has also agreed to lend VG Holding Corp $35 million through the closing of the purchase. Ray Muzyka, Co-founder and CEO of BioWare Corp, thinks it's all money well spent. "This vision is consistent with BioWare's focus on crafting the highest quality story-driven games in the world," he says. "It will enable us to further the careers of the passionate, creative and hard working teams at BioWare Edmonton and BioWare Austin."
EA will hold a conference call later today to discuss the acquisition. Oh, and here are all the exclamation marks we wanted to put in the headline: !!!!!!!!!!
Reader Comments (106)
Posted: Oct 11th 2007 6:46PM Orangecoke said
Yep, BioWare owns the Mass Effect brand.
Posted: Oct 11th 2007 7:39PM (Unverified) said
Great pic!!! I see it as basically...somebodies fucked..
Seal = bioware, pandemic (us as gamers)
Great White = EA
Seal = bioware, pandemic (us as gamers)
Great White = EA
Posted: Oct 11th 2007 8:10PM (Unverified) said
I could care less who did the buying. Anytime I see a corporate buyout or merger it breaks my heart. I wish this sort of thing were illegal.
But, you know what? The fact that it's EA doing the buying DOES make this worse.
But, you know what? The fact that it's EA doing the buying DOES make this worse.
Posted: Oct 11th 2007 9:30PM R V said
Whats the over/under on them having contacted Bungie already?
Posted: Oct 13th 2007 12:50PM (Unverified) said
There is nothing shocking about this. John Riccitello was the CEO of EA, left and co-founded Elevation Partners, and returned to EA. If anything, this was obvious.
Posted: Dec 18th 2007 5:04PM (Unverified) said
EA gutted the Dev staff of my fav game, Ultima Online, and is moving or has already moved UO's offices from CA to VA. EA just moved UO's office staff from Texas a year or two ago to California! UO although well behind newer and larger MMOs it had to have been a money maker through the past 10 years. But to do this, laying off Devs with years of history and experience with the product is extremely short sighted and cannot do anything but hurt the game before long. EA is making fewer (newer) people do the jobs of many more who also had much more experiece in the game's community and lore. Being in VA will put remaining staff under even greater control from the EA bottom line minded managers. The loyalty of this game's players trancends that of many MMOs yet it is getting the short end of the deal here. Speculation mostly puts it as a cost cutting measure for all EAs games to make up for EA's $620 million acquisition. I hate to be cynical about it but it is hard not to be suspicious of EAs motives and their trampeling good products (i.e. using them up) and discarding them when no longer profitable enough. We can only hope that new small non-EA developers will have success in creating fun games and at the same time not sell out the soul of their game to a behemoth uttering sweet words but who really want to just milk the hot game then throw it by the road side as they keep marching along towards the almighty dollar sign. Keep championing the little guys who are making good games!
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