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Newell: Valve would 'disintegrate' before selling out
Newell: Valve would 'disintegrate' before selling out
September 10, 2012 | By Mike Rose

September 10, 2012 | By Mike Rose
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    29 comments
More: Console/PC, Business/Marketing



"It's way more likely we would head in that direction than say, 'Let's find some giant company that wants to cash us out and wait two or three years to have our employment agreements terminate.'"
- Valve boss Gabe Newell explains that it's more likely Valve would "disintegrate," employees departing, before he would sell it to another company.

Not that Newell hasn't had opportunities to sell the company, reports the New York Times. According to "two people with knowledge of the discussion," Electronic Arts was previously interested in acquiring Valve, which was valued for over $1 billion.

That figure most likely wouldn't cut it nowadays, however -- Wedbush Securities' analyst Michael Pachter believes that Valve is worth around $2.5 billion today.

[UPDATE: We've updated the headline and the EA acquisition reference to better reflect the original NYT article.]


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Comments


Luke Quinn
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Good on you, Gabe; I only wish Pandemic and Bioware had resisted the dark-side as you did.
I hope Valve sticks around for a good long while yet because I want to work there one day. :D

Cameron Christian
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Pandemics goal was to sell out. Not sure about bioware.

Gonzalo Daniel
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Oh man... EA was the doom of Bioware =(

Christian Sumido
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And this is why Gabe is a badass.

Alex Nichiporchik
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They have a company that's profitable with a flat culture where employees can do what they love.

Why the hell would you sell that?

A company where game concepts get born from playing against bots with knives in Counter-Strike (Left 4 Dead...) is something you should never ever sell out on.

Sean Monica
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Same reason everyone else bombs out eventually, money :P

Paul Laroquod
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Don't sell it. Create Valve-stamped hardware instead and leverage synergies all over the place. I'm sure that'll work out well for rank n file gamers.

Raymond Ortgiesen
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Some men aren't looking for anything logical, like money. They can't be bought, bullied, reasoned or negotiated with. Some men just want to watch the world game.

Aaron Fowler
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.

Stephen Cunha
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When is Gabe's Birthday? I want to celebrate! This guy is the greatest!

I am a hardcore gamer, most of the time feel exploited by companies like EA and Microsoft.. Blizzard, etc.

I know Valve is making Billions, but they give back to the gamers.

Thank You Gabe, keep on fightin the good fight!

If everyone sold out, including EA, all that would be left is Ted Turner and Bill Gates... I think they alread have enough money.

Joseph Anthony B. A. Tanimowo-Reyes
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November 3rd, according to Wikipedia.

WILLIAM TAYLOR
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I think it's funny that he says he wouldn't sell because some of the employees might be fired, but then says that the option he would prefer is to close the company, guaranteeing that 100% of the employees would be fired.

E Zachary Knight
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I still think his option is far better for the company. If Valve was bought out, the integrity of the company will be eroded until it is a shell of its former self. If all the original staff hadn't left by this point, they would be fired and replaced by cheaper internal staff from the purchasing company.

On the other hand, if valve just up and died suddenly, it would have died in the same state it lived, as a valued source of gaming for many people. Sure it would be missed, but its reputation would remain intact. Would people lose their jobs in this scenario? Yes, but at least they have the reputable Valve on their resume and not the shell that would have happened after a buy out.

Ron Dippold
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The long slow death of attrition and corruption can be a lot more damaging than a clean break. It's only anecdotal, but both people I knew who were working at Bioware got disgusted and quit in the last two years. They found new jobs and are much happier. On the other hand, the people who are still at Bioware do still Have A Job, so if that's the primary concern some employees might indeed prefer just staying employed - but I'm betting most of them would prefer to keep the Valve name (and its cachet on their resume) intact.

Matthew Downey
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Also, if everyone were forced to quit all-at-once, they'd probably all get a severance package out of Gabe's kindness. I think companies can find ways to fire you without supplying severance but I'm lazy and have never had a job, so I have no real-world knowledge of companies completely screwing over employees with respect to severance.

James Castile
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I didn't read anywhere about firing. He says 'scattered' which to me means having his talent hired away.

Aaron Fowler
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Way to stick it to the man Gabe!

Alex Belzer
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"This was the most negative Valve review Superannuation was able to find": http://kotaku.com/5940672/pissed-off-employees-bash-pretty-much-e
very-major-video-game-company

Jeremie Sinic
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I was thinking about that article too :D
I hope someday Gabe Newell manages to clone himself. I mean, how can you replace that guy?

Keith Nemitz
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Flash forward to 2063. "Newall, a wealthy games industrialist, had his will contested from the start. The bulk of his ownership of Valve was transferred to his third-removed cousin, Suzy. She has opened the bidding for control of the company, setting a price point of $100 billion. This is perceived by the greater business community as a 'stupid bargain.'"

Nothing lasts forever.

Eric McVinney
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Gotta live in the moment, Keith ;)

Jeremy Reaban
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Yup, this pretty much happened with A-B here in St. Louis. The most recent heir decided he'd rather be a playboy than run a beer company, so he sold out.

Danny Bernal
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Faith_in_Humanity++;

Jacob Alvarez
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I give 4 out of 4 crowbars for this statement!

Joe Morton
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"I'm never going to sell out", says Winston Howell III. He takes a sip from his martini and gazes from the deck of his yacht. "I can't imagine why all those other people sell out. I mean, have some integrity!"

Jeff Cary
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Somewhere, Cave Johnson approves of this message.

Mike Murray
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I think Gabe is still pissed at EA for the Westwood debacle.

Jean-Michel Vilain
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I think this is called human resource management.
By saying this to the press, he comforts his staff.
Now maybe that it truly is his own opinion.

Jeremie Sinic
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Funny to hear about a takeover by Nexon now...


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