Original URL: http://www.reghardware.co.uk/2007/10/12/ea_buys_bioware_pandemic/
Gaming megapublisher and dev sweat shop operator Electronic Arts plans to buy VG Holding Corp, owner of BioWare and Pandemic Studios, for $860m.
The sum will give EA ownership of both BioWare's and Pandemic's IPs, including Jade Empire, Mass Effect Dragon Age and Baldur's Gate.
EA will pay $620m in cash to stockholders, as well as $155m in equity to "certain employees of VG Holding," assume $50m in outstanding stock, and loan the company up to $35m.
"These are two of the most respected studios in the industry and I'm glad to be working with them again. They'll make a strong contribution to our strategic growth initiatives on quality, online gaming and developing new intellectual properties," said John Riccitello, EA CEO. "We also expect this will drive long-term value for our shareholders."
Gaming fan concerns over EA's, um, quantitative approach to the market may not be unfounded. The BBC reports (http://news.bbc.co.uk/1/hi/business/7041229.stm) that EA plans to release four or five games a year from the new studios.
The acquisition is subject to the regular gang of customary closing conditions, including regulatory approvals. It's expected to close in January 2008. ®
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