In a major announcement, EA has announced that it plans to acquire Titanfall developer Respawn Entertainment. The deal has finalized for $151 million in cash and up to $164 million in long-term equity in the form of restricted stock units to employees. That said, EA is already ready to pay additional $140 million based on performance through the end of 2022. This is interesting.
“We’ve seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset,” said Andrew Wilson, CEO of Electronic Arts. “Our longtime partnership is grounded in a shared desire to push the boundaries and deliver extraordinary and innovative new experiences for players around the world. Together, we’ve brought this to life in the Titanfall franchise, and now with the Respawn team joining EA, we have exciting plans to accomplish even more amazing things in the future.”
“We started Respawn with the goal to create a studio with some of the best talent in the industry, and to be a top developer of innovative games,” said Vince Zampella, CEO of Respawn Entertainment. “We felt that now was the time to join an industry leader that brings the resources and support we need for long term success, while still keeping our culture and creative freedom. EA has been a great partner over the years with Titanfall and Titanfall 2, and we’re excited to combine our strengths. This is a great next step for Respawn, EA, and our players.”
Respawn is already working on the next version of Titanfall which was expected to be Xbox Exclusive, but things can change. However, according to Andrew Wilson, CEO of Electronic Arts, they aren’t going to kill it off. He said:
Together, we’ve brought this to life in the Titanfall franchise, and now with the Respawn team joining EA, we have exciting plans to accomplish even more amazing things in the future.”
Vince Zampella, founder of Respawn Entertainment said that joining EA will make them better to compete in the market as they get more resources, and tech to make better games.
While it wasn’t necessary, going with EA made a lot of sense. With Titanfall and Star Wars, EA has been a great development partner that supports us and doesn’t interfere with our process for making games or studio culture. EA will provide us with more resources, access to new technologies, and expertise that we can tap into to that will help us make better games, and Respawn will retain the same creative freedom and culture we’ve always had. We’ve been talking closely with the leadership at EA and we share their values and vision for the future of being a developer-focused company that puts the players first.