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EA acquires social network game dev Playfish for $300 million

by Griffin McElroy { Nov 9th 2009 at 11:30AM }

As a number of "industry sources" reported last month, Electronic Arts has elected to add a new studio to its already expansive roster: Playfish, a prolific developer of free-to-play casual games on social networking sites like Facebook. The studio was bought out for about $275 million with an additional $25 million set aside for equity retention arrangements. Playfish is also set to receive another $100 million, should it manage to reach unspecified "performance milestones" before 2012.

Not only is that sum of money much higher than the $250 million total teased by the aforementioned analysts in October, it's ... well, it just seems like a lot of money to spend on a studio which actually developed a game called Bowling Buddies. However, considering Playfish's ten titles register 60 million active users and one billion play sessions every month, we suppose EA's making a sound investment. The times, dear friends -- they are a-changin'.

THQ takeover talk causes stock bump

by Alexander Sliwinski { Sep 23rd 2009 at 11:29AM }

THQ's stock jumped up a solid 13 percent yesterday over whispers that the publisher is in a takeover company's line of sight. Optimism has recently surrounded the once fumbling publisher, as it pulled off a couple retail successes and has put on a good show with some surprisingly frank talk about its future.

However, as much as investors believe a buyout is in the works, Reuters spoke with an analyst who isn't so sure. MKM Partners analyst Eric Handler says rumors of a THQ buyout crop up almost every quarter. He believes THQ still has too many licensed games and is just starting to build a solid foundation of owned intellectual property.

Yeah, well ... we talked to an analyst, too. Wedbush Morgan's Michael Pachter tells us he doesn't believe a buyout is likely either. He concurs, "THQ is heavy on licensed content, and many licenses potentially terminate on change of control. I don't see their recent performance instilling a lot of confidence in their ability to manage a bigger library of content that would be presented in a media buyout." Hmmm, from where are investors getting this buyout notion then?

Gamecock acquisition goes south - vendors accuse SouthPeak of not paying up

by Ludwig Kietzmann { Aug 14th 2009 at 4:00PM }

The story of Gamecock Media Group never had a very satisfying ending. Created by industry entrepreneurs Mike Wilson, Rick Stults and Harry Miller, the company set out to buck-buck-buck the trend -- a perceived sequence of retreads, rehashes and remakes that characterized a rapidly expanding games industry. The games were undoubtedly indie, the choices bizarre and the rooster costumes touted by Wilson and the gang were just plain weird. But not nearly as weird as the David vs. Goliath scenario that ended with the lowly rock slinger shaking hands with his imposing foe.

But in October of 2008, SouthPeak Interactive Corporation stepped out of the role of opposition, instead donning the chivalrous and sharply dressed persona of corporate savior. A shaky economy had compelled Gamecock's main investor to tighten the belt, an act which former Gamecock CEO (and subsequent co-founder of Devolver Digital) Mike Wilson notched up as a swift and unexpected crisis. "He and his board decided that with their main business bleeding so badly, they needed to cut off anything 'ancillary'," Wilson said, "such as his investment in outside businesses, one of which was our company." With the timing sitting uncomfortably close to the Christmas rush and promising titles like Legendary and Mushroom Men on the verge of completion, Gamecock needed help.

"And suddenly there was NO money. So, we literally had to find someone to acquire us immediately ... someone who knew the business, could see the imminent revenues versus liabilities, and move very fast." And wouldn't you know it: for a Goliath, SouthPeak was pretty fast. "A week later, we were bought, and all we could do was put on a happy face and hope for the best."

Continued →

Rumor: Warner Bros. wants Codemasters

by Alexander Sliwinski { Jun 23rd 2009 at 11:59PM }

It appears that Codemasters could become a paid-for adopted sibling in the Warner Bros. Interactive family, if a VG247 article is to be believed. Meanwhile, a follow-up report by GI.biz indicates that a Codemasters rep declined to comment, saying, "Everything is fine here." Indeed!

In some ways, we're surprised it took this long for the story to drop. After all, at this year's E3 all of Codemasters' titles were shown at the Warner Bros. booth. We've yet to hear back from Codemasters, but WBIE was kind enough to inform us that it doesn't "comment on rumors or speculation." Shame, really. We were hoping to hear "everything is fine" there too. If true, Warner Bros. is on the acquisition warpath, which it hasn't been shy about. The company currently has a $33 million bid out for Midway. Hey WBIE, what do you know about Joystiq Publishing ...

Square Enix and Eidos dropping Warner Bros. publishing

by Majed Athab { Jun 1st 2009 at 4:10PM }

Although the ink has dried on Square Enix's buyout of Eidos last month, there still remains a few issues to iron out before the handover is complete. One of these issues is the publishing rights of currently scheduled titles. Batman: Arkham Asylum and Mini Ninjas were originally under Warner Bros. Interactive before the takeover and will continue to go under that name; however, all future titles will return in-house.

Kane & Lynch 2 and Just Cause 2 can be counted among those titles donning the Square Enix logos, though thankfully the influence stops there as Eidos will continue to run as an independent company. Don't worry, Kane & Lynch will be androgyny-free.

Warner Bros. bids on Midway for some reason

by JC Fletcher { May 21st 2009 at 1:30PM }

When we read about Midway's recent troubles, we're glad we don't own any piece of the company. However, Warner Bros. executives see the same stories and think "we need that." Midway announced today that a "stalking horse" asset purchase agreement with Warner Bros. has commenced, with Warner bidding $33 million for the majority of Midway's assets, including studios in Chicago and Seattle, as well as the Mortal Kombat franchise.

According to Midway's press release, the agreement does not include rights to TNA wrestling games, nor Midway's San Diego and Newcastle studios.

This isn't a sure thing yet: before the Warner agreement goes through, other "qualified buyers" will be allowed to put in bids in a "court-supervised auction process."

Rumor: Warner Bros. hooked on Midway bait

by James Ransom-Wiley { Apr 24th 2009 at 6:40PM }

Just a week after casting itself into uncertain waters, Midway has reportedly gotten a bite -- er, been bitten by Warner Bros. Interactive. Now comes the hard part: reeling in the deal. After losing Eidos to Square Enix, Warner's got a grumbling in its tummy for cheap chow, and for a proposed $30 million, Midway is a relatively inexpensive meal for the big fish to swallow. Still, much of Midway is simply indigestible.

An anonymous source tells MCV, "Warner is pretty confident that they will get Midway ... They look ready to put the money on the table." Whether that money is the full $30 million or just a portion of the asking price (for specific IPs like Mortal Kombat, etc.) is allegedly keeping the deal on the line. Will it snap? Oh, the suspense!

Square Enix buyout of Eidos approved

by David Hinkle { Mar 27th 2009 at 1:00PM }

The Square Enix purchase of Eidos will go through, as 85% of the Eidos shareholders voted in favor (big surprise there) of their new overlords at a recent court hearing and passed the motion of acquisition at the EGM afterward. It is estimated that Square Enix will take over operating duties some time in late April, when it's assumed all of Eidos' shares will be delisted.

We imagine Square Enix's first order of business will be to start work on Final Fantasy X3: Lara's Shadow, in which Yuna, Rikku, and Lara work together to solve a mystery surrounding a sunken ship. Also, they try to find Tidus again.

Bases still loaded: Jaleco isn't dead

by JC Fletcher { Mar 25th 2009 at 11:00PM }

Jaleco hasn't left the game industry following its buyout by Game Yarou. In fact, it's going to be business as usual at the Jaleco offices, with the only difference being that hopefully there will be some business.

Gamasutra reports that under Game Yarou's ownership, Jaleco Limited will continue normal operation, and "operate its Tokyo office independently of Game Yarou." The Wii action RPG Ougon no Kizuna (official site here) is still in production and scheduled for a May 28 release in Japan.

Since the press release announcing the buyout specifically mentioned reasons why Jaleco was leaving the game industry, we suspect that this was more a change in plans than a simple miscommunication.

Namco Bandai now owns 95% of D3 Publisher

by Xav de Matos { Mar 18th 2009 at 1:00AM }

Namco Bandai has gobbled up 19,990 shares of D3 Publisher, giving them ownership of 95.02% of the company. Siliconera reports the house that Pacman built has purchased the majority of the company at a combined buyout value of 1,239,380,000 yen ($12.55 million). In mid February, Namco Bandai -- who at the time made deals with D3's board, resulting in a 70% ownership of the company -- announced plans to purchase the remaining 30% of D3 Publisher stock. The remaining shares were purchased at the originally announced offer of ¥62,000 (US$626) per share (which sounds crazy to us).

D3 Publisher owns the overseas rights to the Ben 10 franchise as well as the Vicious Engine, the back end that powered such PSP titles as Dead Head Fred and 300: March to Glory. D3 is also responsible for Dark Sector and the OneChanbara franchise. Can someone say "buyers remorse?"

Square Enix to buy out Eidos in May

by JC Fletcher { Mar 4th 2009 at 12:31PM }

Eidos and Square Enix have agreed upon terms for the proposed buyout of Eidos's share capital by the Japanese publisher. Eidos shareholders are "expected to approve the deal" later this month, according to MCV, which suggests that a growing number have seen the light (where "the light" means "Square Enix's books").

Bad news for those of you planning to buy Eidos stock for a friend as a birthday present next month: Eidos will suspend trading of its shares on April 21, with its listings to be taken down the next day, in anticipation of this deal. The companies are planning to have a settlement in place by May 6, at which point we assume Eidos staff will use the sudden windfall to upgrade their weapons and armor.

Square Enix acquires more Eidos stock

by Alexander Sliwinski { Feb 24th 2009 at 10:00AM }

Square Enix is working its way around Eidos' sphere grid of stock holders and leveling up for, what appears to be, its inevitable takeover of the British publisher. GI.biz reports that two major Eidos investors have sold 11.13 percent of the publisher's total stock to the Moogle master at 32 pence a share.

Using fancy business language, Square Enix claims it has "irrevocable undertaking" of 32 percent to vote in favor of the acquisition. That may be the "irrevocable" figure, but we learned Squenix previously had about 45 percent -- chances are, that number has gone up. It appears that Square Enix will finally get that Western developer it's been craving for a while.

Growing number of Eidos shareholders support Square Enix buyout

by Alexander Sliwinski { Feb 18th 2009 at 3:09PM }

The percentage keeps on growing as Eidos stockholders get in line to support a takeover by Square Enix. MCV reports that Pioneer Investment Management, a ten percent shareholder in the house of Hitman and Croft, is supporting the $120 million buyout.

Warner Bros., which controls 20 percent of the stock, has already agreed that a purchase by the powerhouse publisher of androgyny would be best for the ailing British company. Square Enix now has public approval from 45 percent of shareholder, and an Eidos vote on the acquisition will occur at the company board meeting in late March. Soon after, Agent 47 will prefer an over-sized sword to his Silverballers, and Lady Croft will wake up with a bad case of anime hair.

Namco Bandai announces intent to purchase D3 Publisher

by Randy Nelson { Feb 12th 2009 at 3:18PM }

It looks like even a crack squad of bikini-clad samurai won't be able to hold off an acquisition of D3 by fellow Japanese publisher Namco Bandai. That latter has revealed plans to effectively buy out D3 by purchasing all of its stock. Namco has already made deals with D3's board which have resulted in it obtaining a 70% stake in the company. It has offered to purchase the remaining 30% at a share price of ¥62,000 (US$686)

In a press release announcing the proposed buyout, Namco notes that D3 would benefit from Bandai's reach into other mediums (toys, TV, arcades, movies/music); the sharing of game engine technology; cooperative development of mobile titles; and the rights to use Namco-owned properties (characters, etc.) in its Simple series of budget games.

We'll let you know when -- and if -- D3 has tekken the offer.

[Via VG247]

Source - Bandai Namco plans D3 buyout [andriasang.com]
Source - Bandai Namco Q3 Management Plan [press release: PDF]

Eidos in early buyout talks

by Alexander Sliwinski { Jan 15th 2009 at 4:30PM }

Even though she's more busted than a meth-addicted lady of the night, Eidos is ready to work the street corner again for some johns (we're guessing two brothers with the last name Warner). MCV acquired a statement from the publisher, indicating that the board has received a "preliminary approach" from a company, which "may or may not lead" to a buyout.

Although plenty of corporations with the means have pulled up to offer the troubled company a ride, Warner Bros. is the only one to invest and control 20% of the publisher. Further speculation pointed to Warner Bros. after Time Warner's CFO recently made comments about getting more involved in the games industry. We'll have to wait and see if it's Warner that tells Eidos it's OK to turn off the red light.