A few weeks back, EA announced that it would be acquiring Respawn Entertainment in a deal worth more than $400 million. This announcement came shortly after the publisher revealed that it would be closing down Visceral Games. Now, after dotting the I’s, EA has completed its acquisition of Respawn.
In an update posted to its website on the 1st of December, EA wrote: “On November 9, 2017 we announced an agreement to acquire Respawn Entertainment, LLC, one of the leading independent game development studio and creators of AAA shooter and action games including the critically-acclaimed Titanfall franchise. Today, December 1, 2017, we have completed the acquisition of Respawn on the terms previously disclosed.”
As part of the acquisition agreement, EA will pay Respawn $151 million in cash and then up to $164 million in long-term equity, essentially meaning Respawn employees will get a certain amount of EA stock. The contract also contains a ‘performance consideration’, so depending on how the development of future titles goes, then Respawn stands to make an additional $140 million.
KitGuru Says: EA buying Respawn isn’t so surprising. After all, the studio has been working closely with EA since its inception with games like Titanfall and even an upcoming Star Wars project. Still, given the general public perception of EA right now, I imagine many fans are concerned about this.