Respawn Entertainment acquired by EA in $400 million deal

Respawn Entertainment acquired by EA in $400 million deal Staff Updated on by

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In what could be described as titan-level news, EA has bought Titanfall creators Respawn Entertainment in a deal worth around 400 million dollars as per an announcement by the companies last night.

The terms of the deal will see EA pay $151 million in cash for the studio and up to $164 million in equity over the next four years. Furthermore, EA may be required to pay ‘additional variable cash consideration that is contingent upon achievement of certain performance milestones’ up to the tune of $140 million dollars.

Day to day running of Respawn won’t be affected much by the deal, according to an open letter by CEO Vince Zampella, with no layoffs or major organisation changes to be affected. On the deal, he said ‘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. ‘

The announcement also notes that Respawn are currently working on a third Titanfall game in addition to its game set in the Star Wars universe announced last year, as well as ‘a VR gaming experience’.  All these projects are set to be largely unaffected by the deal and will continue development as planned. 

The news comes barely a month after EA announced the closure of Visceral Games who were also working on a Star Wars game themselves, making the timing of this deal interesting to say the least.