EA Acquires Respawn Entertainment, Creators of Titanfall

In a surprise move that no one saw coming EA is in the process of acquiring Respawn Entertainment, the creators of Titanfall and Titanfall 2. The two companies are already collaborating on several projects. They include a new game in the Titanfall universe, a Star Wars game, and a VR gaming experience.

EA’s CEO Andrew Wilson had this to say about the acquisition. “We’ve seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset. 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.”

While Respawn CEO Vince Zampella had this to say. “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. 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.”


As part of 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 pay more depending on the performance of future games developed through 2022. The additional amount is limited to a maximum of $140 million.

It is expected that the acquisition of Respawn Entertainment will be completed before the end of 2017 or very soon after, subject to regulatory approval. The acquisition is expected to be neutral to EA’s income in 2018 and 2019.


Source: Press Release

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