ZeniMax received at least $105 million in financing for id Software
by Alexander Sliwinski 
{ Jul 7th 2009 at 9:00PM }
We're not that well versed in our mergers and acquisitions jargon, so we asked Wedbush Morgan analyst Michael Pachter for a bit of an explanation. Just what is "debt financing"? He explained, "It means that [ZeniMax] borrowed $105 million at the time that they bought id. The article doesn't say if the debt is secured by id's intellectual property, or what the repayment terms are, but the bottom line is that they bought id with borrowed money. It is not clear what they paid, but safe to assume that they paid at least $105 million, probably more."
ZeniMax isn't hurting for cash, so it's not like the company went begging for a loan. The parent company of Bethesda Softworks already made at least $300 million in sales off of Fallout 3. It'll take some time to find out if ZeniMax's minimum purchase price of $105 million was worth it for id's tech and intellectual property.
[Via Gamasutra. Thank you, Michael]
Reader Comments (Page 1 of 1)
aReEeNeN @ Jul 7th 2009 9:09PM
Hopefully there's no fallout from borrowing all that money to purchase id, otherwise it could spell doom for ZeniMax...
Masker @ Jul 7th 2009 9:12PM
I See what you're doing there.....
aReEeNeN @ Jul 7th 2009 9:18PM
All I'm trying to say is that it would be terrible to see a company like Bethesda fade into oblivion...
PS36Wii Fanboy @ Jul 7th 2009 9:53PM
I am sure there will be a quake in profits now with ID on board, or by the power of Cthulhu, will there be...Breeders cup?
UberNeuman @ Jul 7th 2009 10:37PM
Oh, damn you and all the bad puns you've brought forth.... I'd bet you feel really keen, Commander....
MystileArmor @ Jul 7th 2009 9:09PM
Asking Pachter...? Oh my...
Autobot @ Jul 7th 2009 9:32PM
...
Pachter, I still haven't forgotten what you have done.
Wiizer (Michael Pachter MUST DIE.. Professionally) @ Jul 7th 2009 9:47PM
And they ENCOURAGE him...
You guys seriously don't have access to anyone else? :\
Jack Tretton @ Jul 7th 2009 10:02PM
I think the pink hearts are played out.
yokel @ Jul 8th 2009 1:15AM
Were you here for Dead Space Girl?
Jack Tretton @ Jul 8th 2009 1:10PM
Oh yes.
PS36Wii Fanboy @ Jul 7th 2009 10:07PM
Still... Shit, imagine the possibillities. One side, extremely good at huge landscapes and adventures, the other side.... People who love madness,destruction, balls of steel(I know, it is not 3D realms, but come on, you know they loved the Duke) and more destruction.
My conclusion to this, a ballsy, dark, uber destruction game with oblivion gates and ever expanding lands(rofl)
J.Goodwin @ Jul 8th 2009 5:19AM
It's not certain that they paid $105 mil. It is certain that they borrowed up to $105 mil. This could be an up front loan, it could be restructuring of existing loans, it could be a line of credit (really big credit cards for companies), which could mean that they have access to borrow up to $105 mil. Most likely it's a combination of all of those.
ZeniMax wasn't going to buy id and not have the kind of crazy cash that was going to be needed to keep three additional development teams working on titles like RAGE and Doom4, not to mention the money needed to fund external development of Fallout Vegas and internal development of Elder Scrolls 5 and whatever else they have in their pocket.
This is a big company.