EA is Acquiring Respawn Entertainment the Studio Behind Titanfall
Apparently it’s a good time to be in the video game industry. More specifically it’s a good time to be one of the big three publishing houses. Yesterday I talked sales for the new Call of Duty: WWII game out of Activision/Sledgehammer, and today I am bringing you a new acquisition by EA.
It has been announced that EA is acquiring Respawn Entertainment. Respawn Entertainment is the studio behind the Titanfall series. EA’s CEO, Andrew Wilson had high praise for Respawn’s work stating, “We’ve seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset.” This relationship led EA to make the acquisition which Wilson hopes will “accomplish even more amazing things in the future.”
From a development perspective, Respawn Entertainment has been working on titles ranging from a VR game, a Star Wars game, and a new title in the Titanfall series. Respawn Entertainment’s CEO Vince Zampella released a statement on Respawn’s site which says, “there will be no layoffs or major organization changes” and that games in development are “continuing as planned”.
The deal will see EA pay $151 million in cash, and up to $164 million in long-term equity in the form of restricted stock units to employees. Alongside both these payouts is the potential for variable cash consideration through the achievement of performance milestones. This performance incentive could pay out a maximum of $140 million. The acquisition of Respawn Entertainment is expected to close by the end of the calendar 2017.