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EA Gains 10 Franchises With BioWare/Pandemic Acquisition
by Leigh Alexander
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January 7, 2008
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Electronic Arts has announced that it has completed its purchase of VG Holding Corp, making final the company's acquisition of BioWare and Pandemic Studios under the EA Games label, with which the company gains ten new franchises based on six wholly-owned IP.
EA Games president Frank Gibeau will oversee both studios within his organization, and BioWare's Ray Muzyka and Greg Zeschuk have each been named as vice presidents of EA and co-general managers of BioWare. Similarly, Pandemic's Andrew Goldman and Josh Resnick have each been named vice presidents of EA and co-general managers of Pandemic, while Greg Borrud has been named vice president of EA and chief production officer of Pandemic Studios.
EA has said it aims to broaden its portfolio through the acquisition of the two labels, hoping to attain a competitive position in the RPG, action and adventure genres. EA agreed to pay up to $620 million in cash to the stockholders of the studios' parent, VG Holding Corp, and also said it would issue up to an additional $155 million in equity to certain vested or high-performing employees of VG Holding Corp.
EA also assumed outstanding VG Holding Corp. stock options, and agreed to lend VG Holding Corp. up to $35 million through the closing of the acquisition.
Said Gibeau, “BioWare Corp. and Pandemic Studios are two world-class studios and bring strong, highly compatible cultures of creative excellence to the EA Games Label. Their strengths in the RPG, action and adventure genres further broadens EA’s portfolio, and reinforces our commitment to creating the world’s greatest interactive entertainment.”
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P.S. Sarcasm.
Just thinking out loud here :D
What is EA's track record with great RPG/Adventure companies it acquires?
Here are two examples: Westwood & Origin. Westwood was an excellent RPG/Adventure game maker. Since the buyout: nothing (good anyway). Origin Systems? You know, the PREMIER RPG creators? That deal produced Pink Slips, Ultima Online and highly hyped and then cancelled online projects. UO was a great success, but 10 years later that's all they have to show for the acquisition.
Don't blame it all on changing market tastes killing Adventures and RPGs at retail - other companies have managed to continue and sell very well. Hint: You need creativity - ironically, you need Electronic Artists.
(Just for giggles, go to EA's website and check their STORE for RPGs and Adventure games on the PC. Hmmm... 1 game - Hellgate: London - in RPGs. RPG? A stretch, but okay. Adventure games? Nadda. Zip. Zilch. Now check PS3, Xbox 360, etc. Old Mother Hubbard could offer her visitors more! The EA Rep had one thing right - the deal will ADD to EA's portfolio ! lol)
There are more examples, but this rant is already too long. I just pray the good folks at BioWare and Pandemic can somehow find a way to survive and thrive in the EA.Org Collective. I suggest calling Will Wright at Maxis for survival tips, otherwise they will join Origin and other great developers in the corporate graveyard.
Just my admittedly partially-informed outsider opinion.