EA is acquiring Respawn Entertainment for more than $400 million

In a not so surprising move, today EA announced that it would be acquiring Respawn Entertainment, the studio behind Titanfall and an upcoming Star Wars game. Since its inception, Respawn has partnered with EA as its publisher but now with this $450 million deal, Respawn will officially be part of EA.

Respawn Entertainment had Titanfall and Titanfall 2 published under the EA banner. This also led to the studio having the chance to develop its very own Star Wars game, which EA owns the exclusive rights to. Respawn has also begun working on a virtual reality game, so there is plenty going on at the studio.

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', depending on how the development of future titles goes, then Respawn stands to make an additional $140 million.

The acquisition is expected to close by the end of 2017 or in early 2018. Speaking about the deal, Respawn founder and CEO, Vince Zampella, said: “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.”

KitGuru Says: It seems that the void left by Visceral Games will now be filled by Respawn Entertainment. Hopefully this acquisition deal works out for the best in the long run, I'm particularly excited to see Respawn's Star Wars game at some point.

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