Electronic Arts have confirmed that its previously announced takeover of Respawn Entertainment has been completed as of the 1st December.
On the EA website, the news of the acquisition completion reads
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 agreement, EA will pay $151 million in cash for the Titanfall developer plus up to $164 million in RSU’s to the employees which vest over four years. These stock options generally look to seal in the talent for a number of years rather than seeing them take the money and break off to form another studio.
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.
This isn’t Vince Zampella’s first time at EA either. He previously left the publisher after working on Medal of Honor to form Infinity Ward and Call of Duty.
Titanfall 2 didn’t sell as much as expected according to EA, This was something that Zampella wasn’t best pleased about during an interview with Glixel. When they asked about Titanfall 3 Zampella was obviously unimpressed with an EA publicist response:
Devin Bennett, a publicist for EA, “What we’ve said is we’re committed to the franchise.”
“So, whatever the fuck that means,” retorted the Respawn CEO.
Titanfall 2 likely didn’t sell as well as it should have due to the poor handling of the Titanfall 2 launch where EA executives seemed to believe that there were more kinds of FPS players than there are. Believing that there were Battlefield players, Call of Duty players and another unknown group, Titanfall 2 was launched between the two leading shooters in the market and EA found out that no, there isn’t another group of FPS players, they all just want to shoot people in the face. So having three shooters within a couple of weeks and the underdog being launched in the middle just wasn’t going to end well.
Titanfall 2 is available now for PC, PlayStation 4 and Xbox One.