Electronic Arts to acquire Titanfall maker Respawn for as much as $455 million


#21

I wish i could infinite like this

Well respawn, lets hope your last titanfall game is good, it was nice knowing yall


#22

I mean, it could be worse guys. 2K could’ve bought them out. :upside_down_face:


#23

Or Activision.


#24

Hey, we don’t speak that name here.


#25

After five or so games, the key people will leave the studio and form a new one with help from Activision. And the cycle continues.


#26

#27

The CEO of Electronic Arts, Andrew Wilson, hungers for more


#28

It doesn’t have to mean that. I don’t know anything about their specific situation; does anyone here?

Sometimes when a company’s owners decide to sell, it is because they are facing cash flow problems. They might be facing the possibility of laying off people. This could be an option chosen to keep the team together.

The buyer will be taking on the responsibility of supporting the studio. The buyer will consider the (giant) buyout package and the ongoing financial support to be an investment with the expectation of future profits. Respawn enters this arrangement with full knowledge of that.

What worries me: when that much money is being spent, it shows how high the bar is set for those expectations. Respawn will need to produce very successful games, consistently, or they will test the new owner’s patience. It’s a challenge for any company to do that, though it’s what everyone strives for.

Staying independent, and solvent, that’s a challenge too. :slight_smile:


#29

So is that 455 million being given directly to Respawn, in a ‘heres lots of money, plz let us be your boss’ kind of fashion? Or is it more complicated than that?


#30

It was all invested into hummus.


#31

I read that as, "It was all invested into humans."
:upside_down_face:


#32

Hahaha, good joke.
A company like EA investing anything of worth into the employees.


#33

Employees are also functional investments. But then there is the whole “I have a life outside of work” and the “I need to eat and sleep” factors.


#34

I honestly don’t be know anything more than what was said in one of the articles linked above. But usually I think what you’re talking about in a buyout is, what price was paid to the owners to get them to relinquish title to the company. That’s assuming it was a private company.

If it was a public company already, then the owners already relinquished title, fractionally, to the shareholders, though they would normally remain shareholders themselves. Then, a buyout could be accomplished by stock trading. Probably not the case here.

As for the employees, I imagine they are now effectively EA employees, I think that’s how it usually works with the subsidiary company relationship.


#35

Apparently Nexon (the Asian based company who made the mobile Titanfall game) offered up to buy Respawn first, but EA had some sort of first counter offer deal going on. Either way we were not going to see the year end without Respawn getting acquired.

There was also an interview with CEO Vince Zampella saying that money trouble wasn’t the main reason for the deal, it was just corporate bs like “they wanted to expend into their competitive projects”. Which would make sense in the long run.

$150 is supposedly going to be a cash money for them to be able to use for anything they need and anytime they want to. The rest of the money are either put into stock options and milestone bonuses (aka make EA happy with them lootcrates).

Making a Titanfall 3 is also apart of acquisition deal.

Yups that’s what Zampella said in his q&a though I can’t spare the time to look it up atm. XD


#36



#37

Reading more, it seems that going to a “game as a service” is where Respawn wants to go. EA is already in the process of doing this especially with their sports games where they’re looking to get most of their money from microtransactions and a subscription fee.


#38

R.i.P. 8…(


#39

People are taking it a bit too far

https://twitter.com/BiggSean66/status/930058496216670211


#40

As far as the death threats, yes that is too far.

As for the most negative downvoted thing on Reddit, I’m glad to actually see gamers uniting for once with regards to crappy publisher ideals. It’s definitely been MANY years too late but at least it’s a start. The problem is, it’s easy to follow the band wagon and I suspect many that are even outright vocal will still support them with their money. But, at least there is a glimmer of hope.