EA to Acquire Respawn Entertainment
November 09 2017 - 5:01PM
Business Wire
Leading Development Studio Brings Top Talent
& Award-Winning Titanfall IP to EA’s Portfolio
Electronic Arts Inc. (NASDAQ: EA) announced today an agreement
to acquire Respawn Entertainment, LLC, a leading independent game
development studio and creators of AAA shooter and action games
including the critically-acclaimed Titanfall™ franchise. Respawn
brings to EA the proven leadership and studio talent behind
Titanfall and Titanfall 2, two of the most highly-rated shooter
titles in the last five years. The acquisition builds on a
successful publishing partnership between Respawn and EA, with
multiple projects currently in development – a new title in the
Titanfall franchise, a game set in the Star Wars™ universe and a VR
gaming experience.
“We’ve seen firsthand the world-class caliber of Respawn as a
development studio with incredible vision, deep talent and an
inspiring creative mindset,” said Andrew Wilson, CEO of Electronic
Arts. “Our longtime partnership is grounded in a shared desire to
push the boundaries and deliver extraordinary and innovative new
experiences for players around the world. Together, we’ve brought
this to life in the Titanfall franchise, and now with the Respawn
team joining EA, we have exciting plans to accomplish even more
amazing things in the future.”
“We started Respawn with the goal to create a studio with some
of the best talent in the industry, and to be a top developer of
innovative games,” said Vince Zampella, CEO of Respawn
Entertainment. “We felt that now was the time to join an industry
leader that brings the resources and support we need for long term
success, while still keeping our culture and creative freedom. EA
has been a great partner over the years with Titanfall and
Titanfall 2, and we’re excited to combine our strengths. This is a
great next step for Respawn, EA, and our players.”
Respawn is the creator and developer of the critically-acclaimed
Titanfall franchise that energized the first-person shooter genre
with its innovative gameplay. The first game, Titanfall, was
published by EA in 2014, and received global recognition with more
than 75 top awards. Fans and critics fell in love with the game’s
refreshing, fast-paced multiplayer gameplay. Respawn and EA
launched Titanfall 2 in late 2016, with a new single-player
campaign and expanded multiplayer gameplay, resulting in one of the
year’s top-rated shooters.
Respawn will join EA’s Worldwide Studios organization, a global
creative collective of leading game development studios bringing to
life an unmatched portfolio of top games and services across all
major platforms.
Under the agreement, EA will pay $151 million in cash, and up to
$164 million in long-term equity in the form of restricted stock
units to employees, which will vest over four years. In addition,
EA may be required to pay additional variable cash consideration
that is contingent upon achievement of certain performance
milestones, relating to the development of future titles, through
the end of calendar 2022. The additional consideration is limited
to a maximum of $140 million. The transaction is expected to close
by the end of the calendar 2017 or soon thereafter, subject to
regulatory approvals and other customary closing conditions. The
acquisition is expected to be neutral to EA’s net income in fiscal
years 2018 and 2019.
About Electronic Arts
Electronic Arts (NASDAQ: EA) is a global leader in digital
interactive entertainment. The Company develops and delivers games,
content and online services for Internet-connected consoles, mobile
devices and personal computers. EA has more than 300 million
registered players around the world.
In fiscal year 2017, EA posted GAAP net revenue of $4.8 billion.
Headquartered in Redwood City, California, EA is recognized for a
portfolio of critically acclaimed, high-quality brands such as The
Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Need for Speed™,
Dragon Age™ and Plants vs. Zombies™. More information about EA is
available at www.ea.com/news.
EA SPORTS, Battlefield, The Sims, Need for Speed, Dragon Age,
and Plants vs. Zombies are trademarks of Electronic Arts Inc. NBA,
John Madden, NFL and FIFA are the property of their respective
owners and used with permission. Titanfall is a trademark of
Respawn Entertainment, LLC. STAR WARS © & TM 2017 Lucasfilm
Ltd. All rights reserved.
About Respawn Entertainment
Founded in 2010, Respawn Entertainment is an independent
videogame development studio based in Los Angeles, California.
Founded by the team behind the multi-billion dollar franchise Call
of Duty, Respawn is responsible for creating the Titanfall
franchise reaching nearly 20 million players worldwide. More
information about Respawn is available at www.respawn.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171109006677/en/
Electronic ArtsJohn ReseburgCorporate
Communications650-628-3601JReseburg@ea.comorChris EvendenInvestor
Relations650-628-0255cevenden@ea.comorRespawn EntertainmentJay
FrechetteCommunity Manager818-960-4400jay@respawn.com
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