Electronic Arts to Acquire Respawn Entertainment


 
 
02:10 11/10/2017

Electronic Arts Inc. EA  announced an agreement to acquire Respawn Entertainment, LLC, a leading independent game development studio and creators of AAA shooter and action games that include the critically-acclaimed Titanfall franchise.

Respawn brings to EA  all of its leadership and studio talent that was 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 that include 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.

Wilson continued, “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.”

Respawn is the creator and developer of the critically-acclaimed Titanfall that was published by EA in 2014, and received global recognition with more than 75 top awards. 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.

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.

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.

“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,” Zampella added.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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