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EA to Acquire Respawn

So the big news of the day in the gaming world comes from EA (Electronic Arts) who have announced that they intend to acquire Respawn Entertainment the development team behind Titanfall and Titanfall 2

Various news sites have reported on the purchase including Gamespot, Eurogamer and Kataku and many, many more including a few mainstream media outlets they don't really need the linkbacks

Electronics Arts press site issued the below regarding the purchase

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.

Finally Vince Zampella the founder of Respawn issued a statement on the purchase on the Respawn site with a quick FAQ on what the purchase means to Respawn and oddly himself confirming that Respawn will be allowed to continue with it's current franchise (Titanfall - which is already expected to be Titanfall 3) and an as yet unreleased Star Wars game apparently a VR related game

All in all that sums up the entire process and while it's already nice to see an independent development company do well, it does have me wondering if Titanfall really is a big enough IP to warrant the price tag, furthermore makes me wonder how much Epic Games are worth given that at it's highest point Titanfall sported 20 million users and Fortnite, a game in beta has surpassed that number already


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