Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million

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Monkey Man
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PostElectronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Monkey Man » Thu Nov 09, 2017 10:06 pm

Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million

Electronic Arts announced it will acquire Titanfall maker Respawn Entertainment for $315 million in cash and stock, plus a possible bonus of $140 million. The deal could bring a new long-term franchise into the fold for the big third-party publisher of video games, giving EA an edge in the multibillion-dollar first-person shooter genre with properties such as Titanfall, Battlefront, and Battlefield.

The total purchase price could hit $455 million if Respawn hits its incentive targets, known as an earnout. The deal includes $151 million in cash, $164 million in restricted long-term stock grants for Respawn, and a variable earnout up to $140 million. That’s a lot of money, and it shows what is at stake as EA lines up franchises that could pay off for years to come. It also shows how high the stakes have become in the $108 billion game industry, as you would think that a company like Respawn would be able to exist as an independent game studio.

In an interview with GamesBeat, Vince Zampella, CEO and cofounder of Respawn, said, “We have worked together a long time from the inception of the studio. [An acquisition] has come up from time to time. The question was, where we are in the industry, how do we take the next step in making bigger, better games. We see the need for bigger resources to make bigger games.”

EA executive vice president Patrick Soderlund said in an interview that he echoed Zampella’s view.

“We want to have the best games. We have a good relationship,” Soderlund said. “The creative freedom is still here: DICE, BioWare, our studios have creative freedom and creative integrity. That’s what gets those studios to make great games.”

The move will enable EA to more tightly coordinate with Respawn on the development and release of games. Last year, sales of Titanfall 2 reportedly suffered because it was released too close to the debut of Battlefield 1. That DICE shooter debuted on October 21, and EA published Respawn’s Titanfall 2 on October 28.

Meanwhile, EA and Respawn said today that Respawn is making a new title in the Titanfall franchise, a game set in the Star Wars universe, and a VR gaming experience without a title. Zampella said the Star Wars game is “coming along fantastic.”

The Respawn Star Wars game is significant in part because EA just shut down the 70-person Visceral Studios in Redwood City, California, and reassigned its work to a studio in Vancouver, Canada. Amy Hennig, co-creator of the Uncharted series, joined EA to work on that game, but that project is under new leadership. Asked if that was a concern, Zampella said no. And Soderlund said the closure of Visceral and the purchase of Respawn are not related.

“That was a creative decision,” Soderlund said, referring to it was related to the creative process in making a game..

But Zampella said the reminder is that Respawn has to be successful in its games and think of more ways to be even more successful. He said fans shouldn’t worry that the acquisition will change anything.

“For fans, my message is we are still Respawn and we are going to make things better,” Zampella said. “It doesn’t change the future of Titanfall. Only positives come from it, like more resources.”

Respawn is building a non-Titanfall, non-Star Wars game for the Oculus Rift VR headset, and both Zampella and Soderlund said there is no change in that deal.

Asked if Respawn was dragging EA into VR, Soderlund said he did not feel that was the case.

“We are big believers in the medium and the immersion and what VR can do,” Soderlund said.

https://venturebeat.com/2017/11/09/elec ... nment-455/

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Dual » Thu Nov 09, 2017 10:09 pm

:lol:

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by smurphy » Thu Nov 09, 2017 10:09 pm

I bet the news of Visceral's closure went down a treat as they were signing that deal.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by CuriousOyster » Thu Nov 09, 2017 10:11 pm

Huh, Titanfall 2 was a commericial flop, 1.36m worldwide. There must be some thinking behind it I suppose

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by NickSCFC » Thu Nov 09, 2017 10:13 pm

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Mafro » Thu Nov 09, 2017 10:16 pm

Bit of a weird one. EA already strawberry floated them over with the Titanfall 2 release date and zero advertising.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Mafro » Thu Nov 09, 2017 10:21 pm


HSH28 wrote:Assmung you ever get one that is.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Ad7 » Thu Nov 09, 2017 10:25 pm

Lootcratefall 3

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Saint of Killers » Thu Nov 09, 2017 10:31 pm

CuriousOyster wrote:Huh, Titanfall 2 was a commericial flop, 1.36m worldwide. There must be some thinking behind it I suppose


Ad7 wrote:Lootcratefall 3


.

EA know they have the makings of a cash cow on their hands and, now that they own it outright, they'll even spend money advertising it!

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Somebody Else's Problem » Thu Nov 09, 2017 11:20 pm

I look forward to hearing of Respawn's closure in 18 months.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by lex-man » Fri Nov 10, 2017 12:13 am

Somebody Else's Problem wrote:I look forward to hearing of Respawn's closure in 18 months.


Bioware are first in that particular queue.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Alvin Flummux » Fri Nov 10, 2017 12:15 am

"R.I.P. In Advance" - Entire Games Industry.

If I were a Respawn employee, I'd be polishing my CV up and stashing away mad sums of money right now.

I give it, oh, maybe 3 years?

Last edited by Alvin Flummux on Fri Nov 10, 2017 12:16 am, edited 1 time in total.
Jupiter is in your sun sign this week, making it pretty crowded in there, what with Jupiter being the largest of the planets and all.
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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Peter Crisp » Fri Nov 10, 2017 12:16 am

I have a feeling the staff will already be making sure they have decent CV's and a pile of stamps and envelopes ready to go when they end up being made redundant.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Winckle » Fri Nov 10, 2017 8:25 am

I'm beyond sick of this.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Venom » Fri Nov 10, 2017 8:35 am

CuriousOyster wrote:Huh, Titanfall 2 was a commericial flop, 1.36m worldwide. There must be some thinking behind it I suppose



The cynic in me makes me wonder if EA deliberately sent Titanfall 2 out to die by publishing it just before two other major FPS games last year - just so they could decrease the value of Respawn and buy it up for cheaper!

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Trelliz » Fri Nov 10, 2017 8:38 am

Winckle wrote:I'm beyond sick of this.


I guess the story should read "EA acquires titanfall IP" as that's what they'll take away from this. Shame that activision beat them to the punch with lootboxes literally dropping out of the sky.

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Ad7 » Fri Nov 10, 2017 8:38 am

E
A
SPORTS.
It may be in the game if you purchase this premium loot crate pack at a great value of £99

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by OrangeRakoon » Fri Nov 10, 2017 9:45 am

RIP Titanfall 3 the game that will never be

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Rubix » Fri Nov 10, 2017 10:59 am

RIP Respawn, you will be missed

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PostRe: Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million
by Alvin Flummux » Tue Nov 14, 2017 3:43 am

OrangeRakoon wrote:RIP Titanfall 3 the game that will never be


Should be fun watching it appear at E3, then vanish from our radars for years, before resurfacing as the bastard lovechild of Destiny and PUBG.

Jupiter is in your sun sign this week, making it pretty crowded in there, what with Jupiter being the largest of the planets and all.

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