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EA acquires BioWare and Pandemic Studios photo

Big news makes a big company even bigger. It looks like Electronics Arts will be able to step up their action and role-playing games with the acquisition of both BioWare and Pandemic.

EA announced an agreement with Elevation Partners to acquire VG Holding Corp, owners of both BioWare (Mass Effect) and Pandemic Studios (Mercenaries 2: World in Flames), bringing EA up from big to OMG big, and equpping them with some great minds in the process. Pandemic Studios and BioWare employ a staff of over 800 spread out over Canada, Australia, and the United States.

"These are two of the most respected studios in the industry and Im glad to be working with them again. Theyll make a strong contribution to our strategic growth initiatives on quality, online gaming and developing new intellectual properties, said John Riccitiello, EAs Chief Executive Officer. We also expect this will drive long-term value for our shareholders.

Hit the jump for the full release. 

Electronic Arts Inc. (NASDAQ:ERTS) today announced an agreement with Elevation Partners to acquire VG Holding Corp. -- the owner of both BioWare Corp. and Pandemic Studios. This acquisition gives EA a strong competitive position in key genres in interactive entertainment: action, adventure and role-playing games. The two studios have been recognized for creating some of the highest-quality games in the industry.

BioWare Corp. and Pandemic Studios have ten franchises under development, including six wholly owned games. BioWare Corp. is currently developing the highly anticipated Mass Effect, which will be published by Microsoft in November, and is in the early development stages of a massively multiplayer online game. Pandemic Studios is redefining open-world games with its upcoming Mercenaries 2: World in Flames and Saboteur, in addition to several unannounced projects.

Pandemic Studios and BioWare Corp. employ roughly 800 people across four studios located in Edmonton, Canada; Los Angeles; Austin; and Brisbane, Australia.

These are two of the most respected studios in the industry and Im glad to be working with them again. Theyll make a strong contribution to our strategic growth initiatives on quality, online gaming and developing new intellectual properties, said John Riccitiello, EAs Chief Executive Officer. We also expect this will drive long-term value for our shareholders.

Pandemic Studios is led by Andrew Goldman, Josh Resnick and Greg Borrud. BioWare Corp. is jointly led by Greg Zeschuk and Ray Muzyka. These teams will join the EA Games Label run by Frank Gibeau, President of EA Games.

Pandemic Studios remains focused on attracting the best talent and creating blockbuster action games, said Josh Resnick, President and Co-founder of Pandemic Studios. As a worldwide publishing leader, EA represents the ideal partner to bring our titles to market as global entertainment events.

We are truly excited by John Riccitiellos new vision for EA, said Ray Muzyka, Co-founder and CEO of BioWare Corp. This vision is consistent with BioWares focus on crafting the highest quality story-driven games in the world. It will enable us to further the careers of the passionate, creative and hard working teams at BioWare Edmonton and BioWare Austin.

EA will pay up to $620 million in cash to the stockholders of VG Holding Corp. and will issue up to an additional $155 million in equity to certain employees of VG Holding Corp., which will be subject to time-based or performance-based vesting criteria. EA will also assume outstanding VG Holding Corp. stock options. In addition, EA has agreed to lend VG Holding Corp. up to $35 million through the closing of the acquisition.








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Dale North is Destructoid's Editor-In-Chief, a founding editor, and specialist in Japanese gaming. An accomplished musician, Dale was reporting from Japan during the earthquakes of 2011. Luckily, he got the fuck out alive and is home in America now with his wife and beloved corgi, Einstein. Dale is also a co-founder of Destructoid's sister anime site Japanator. Likes Corgis, Sega Saturn, PSP, iPhone, Photographic tools. Meet the rest of the team



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62 comments | showing # 1 to 50
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next 50 comments

Dr Milkdad's Avatar - Comment posted on 10/11/2007 15:42
Dr Milkdad
I think I just heard every Bioware fan scream in pain just now...
Arugala9's Avatar - Comment posted on 10/11/2007 15:42
Arugala9
Holy shit, my jaw just dropped. Please don't kill these studios EA, you have finally started to do some things right, don't fuck this up.
ShawnKelfonne's Avatar - Comment posted on 10/11/2007 15:42
ShawnKelfonne
RIP BioWare?
Justin Villasenor's Avatar - Comment posted on 10/11/2007 15:42
Justin Villasenor
Damn. Guess they felt the need to absorb some more companies after Activision beat them sales-wise.
demonelite's Avatar - Comment posted on 10/11/2007 15:43
demonelite
I just hope EA dosnt fuck around with BioWare and ruin their good name.
Dale North's Avatar - Comment posted on 10/11/2007 15:43
Dale North
TGD: exactly what I was thinking!
bluemeep's Avatar - Comment posted on 10/11/2007 15:45
bluemeep
Damn it.
Corncobtacular's Avatar - Comment posted on 10/11/2007 15:45
Corncobtacular
NOOOOOOOOOOOOOOOOOO
bruceleethree's Avatar - Comment posted on 10/11/2007 15:46
bruceleethree
NOOOOOOOOOOOOOOOOOOOO
Volomon's Avatar - Comment posted on 10/11/2007 15:46
Volomon
Well there goes any future hope of seeing any good Bioware games.
HiGHFLYiN9's Avatar - Comment posted on 10/11/2007 15:47
HiGHFLYiN9
ughhhh, I'm feeling a terrible pain in my stomach.
RskimB's Avatar - Comment posted on 10/11/2007 15:48
RskimB
O noes Bioware has been swallowed up.
chronicus_prime's Avatar - Comment posted on 10/11/2007 15:51
chronicus_prime
EA is now truly the walmart of videogames.
Zarathustra's Avatar - Comment posted on 10/11/2007 15:53
Zarathustra
Like everyone else, my first reaction was anger and heartbreak. But then I started to think, maybe this is not so bad. It seems like EA is really trying to change their image. So, instead of seeing this as bad for Bioware and Pandemic, maybe it's just good for EA, and won't affect these respected developers...
Trevor McGee's Avatar - Comment posted on 10/11/2007 15:55
Trevor McGee
God damn! They're like The Blob, they absorb small companies, kill them, and grow bigger and more powerful.
xagarath's Avatar - Comment posted on 10/11/2007 15:58
xagarath
Bleeding bloody sodomising hell in a handbag.
This is bad.
Hoygeit's Avatar - Comment posted on 10/11/2007 16:04
Hoygeit
SUCK.
Nick Chester's Avatar - Comment posted on 10/11/2007 16:06
Nick Chester
Wait, so BioWare and Pandemic have more resources, more money, and better marketing?

THIS SUCKS.

Guys, relax.
Zero Iscariot's Avatar - Comment posted on 10/11/2007 16:07
Zero Iscariot
This is not good. I do not approve of this. Nobody gives a flying fack what I think, but I buy games, not names. Remember that you slime-slicked assholes!

Please don't buy the EA/MS console in 2010...
king3vbo's Avatar - Comment posted on 10/11/2007 16:09
king3vbo
This can only end badly
Variable Gear's Avatar - Comment posted on 10/11/2007 16:10
Variable Gear
This is great news. Bioware and Pandemic having easy access to EA's moneybags is great for the gamers. EA has been cleaning up its act for a bit now, and this proves that EA wants to focus on the quality of the games they publish.

/Sensibility

Mass Effect goes to PS3 when?
Brian Keljore's Avatar - Comment posted on 10/11/2007 16:21
Brian Keljore
GOD DAMMIT... well Bioware is going the way of all the other good PC dev companies... the shitter.
mackisawesome's Avatar - Comment posted on 10/11/2007 16:22
mackisawesome
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO.......

its like a plague
Kaikara's Avatar - Comment posted on 10/11/2007 16:22
Kaikara
OMG NOOOOOO, Bioware to EA, please god no :-(
Dale North's Avatar - Comment posted on 10/11/2007 16:23
Dale North
haha. I love all of the "Noooooooooooooooooooooooos"
Shalashaska161's Avatar - Comment posted on 10/11/2007 16:30
Shalashaska161
Nooooooo! It could be ok as long as EA leaves these companies to do their thing and simply gives them gives them oodles of cash to do so.
KGBrAm's Avatar - Comment posted on 10/11/2007 16:31
KGBrAm
I used to work for a nice mobile gaming company.
It was then bought out by EA. It changed. Big time.
I left.


I feel sorry for the new 'EA Employees'

RIP BioWare.
Arugala9's Avatar - Comment posted on 10/11/2007 16:39
Arugala9
Crecente is liveblogging EA's Bioware, Pandemic conference call and EA is saying they will break even on the deal in 2009 and making money in 2010. Also, EA is saying ten plus games will be devloped, these include Jade Empire, Mass Effect, Mercenaries, Saboteur, Neverwinter Knights and several others, also Biowares MMO. In addition several games are being targeted ar DS/Wii. The games are suppose to drop from now to 2011.
KGETZ3's Avatar - Comment posted on 10/11/2007 16:41
KGETZ3
I'm going to cry.
DOOM's Avatar - Comment posted on 10/11/2007 16:42
DOOM
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!
(SnIffLe)...
kapshhh's Avatar - Comment posted on 10/11/2007 16:46
kapshhh
Then EA said "Like a cow you shall be milked!" the end.
DarkTravesty's Avatar - Comment posted on 10/11/2007 16:46
DarkTravesty
@ rorschach actually no
ArrestedDeveloper's Avatar - Comment posted on 10/11/2007 16:58
ArrestedDeveloper
Microsoft is still publishing the 1st Mass Effect, I doubt that it will be going multiplatform, as for the next two games in the series it probably depends on how much Microsoft has already worked out with Bioware and if Bioware (or another EA studio) thinks it would be worth the effort to port it to PS3.
Zanch's Avatar - Comment posted on 10/11/2007 17:02
Zanch
Ok, so everyone stop freakin' out and just imagine this for a second: A Lord of the Rings (or just Middle Earth in general) RPG made by Bioware. That....would be so....fucking....cool. Look at what they did for Star Wars!
foxhound009's Avatar - Comment posted on 10/11/2007 17:11
foxhound009
Omg... You'll have to download your game and pay another fee to be able do the same over half a year..... way to go EA suck out every dollar you can of us. It's not like we can do anything about it... you know what happens when an bussines loses it's competition... It can do whatever the fuck it wants, that's what happens!
Capn Birdseye's Avatar - Comment posted on 10/11/2007 17:15
Capn Birdseye
This is bad news. It means that Pandemic and Bioware will lose a portion of creative control, and will be subject to any changes in target demographic or focus of the parent company. EA have a history of messing up established franchises. Sure they have done one or two things good, but I would rather Bioware make what they want to make instead of being told by the parent company they would have to make some MMORPG based on a purchased IP (sorry Zanch, a LOTR RPG from Bioware would suck IMO ;) ) instead of pursuing their own goals.

They were doing so well, breaking out from under the Star Wars IP with Jade Empire and Mass Effect. Lets hope some other company can crank out some equally decent western RPGs and stay independent.
3dd13's Avatar - Comment posted on 10/11/2007 17:19
3dd13
More Cocks.

Good ole EA fucking up companies that had great potential by slapping their moniker on them.
Scape's Avatar - Comment posted on 10/11/2007 17:23
Scape
This is fucking shitty news. Sure now the studios have more resources and advertising, but do you think EA really won't pressure the studios into doing things their way?? I personally can't wait for the in game advertising and micro-transactions to start popping up in the Mass Effect universe.

Sad to see this happen to a great studio like Bioware.
naia-the-gamer's Avatar - Comment posted on 10/11/2007 17:58
naia-the-gamer
WTF sauce is this shit?!

Why does EA have to feed on every company in existence like a parasite? I fell in love with Bioware thanks to Neverwinter Nights (which I still play, the first one that is), and I worry about the quality of their RPGs after this. I really want EA to function only as the money-tosser and let Bioware still keep 100% creative control. Otherwise their games could turn to shit.

Damn I don't want to have to start buying EA products. WTF...
Jedburg's Avatar - Comment posted on 10/11/2007 18:02
Jedburg
If EA continues like this in a couple of years we're gonna get some mighty shit games because EA's making them all and we won't have a choice.
h3lios's Avatar - Comment posted on 10/11/2007 18:07
h3lios
EA Presents: Teh Elder Scrolls 2010 MADDEN EDITION!
boxhound's Avatar - Comment posted on 10/11/2007 18:24
boxhound
Holy Shit! :(
Cowboy TTop's Avatar - Comment posted on 10/11/2007 19:10
Cowboy TTop
Its just all money and shareholders to EA, and I think these kind of acquisitions will eventually kill this industry. This kind of thing is exactly what kills creativity. Why do they think Bungie just got out from under MS? Most likely because Bungie didn't want to make Halo forever. Having freedom to be creative is why Bungie was formed in the first place, plain proof that no one really likes to be owned (for any kind of money).

When you take a lot of people (metaphor for Bioware etc) and put them in a house ruled by a mother brain, after being free and having your own place, I doubt it will end well.

However, when black wholes like EA do their sucking, some staff will no doubt leave to persue their own visions. From acorns new trees will grow.

Someone call Andrew Ryan, so all independant developers can book their studios space in Rapture, far from the EA leech laced tentacles.
Boolean's Avatar - Comment posted on 10/11/2007 19:10
Boolean
A) HOW IN THE JESUS FUCK DID EA AFFORD TO BUY OUT BIOWARE?!

B) How in the crap hole did MS not buy them first? Because you know what this means now -

Mass Effect is getting ported to the PS3 (or at bare minimum, every game from Bioware from now on). EA never do exclusives, they whore games out to every system possible. I give it two months before we hear EA is working on a new special edition Mass Effect for the PS3.
Wedge's Avatar - Comment posted on 10/11/2007 19:11
Wedge
IT'S FEAILURE TIME.
pakokonka's Avatar - Comment posted on 10/11/2007 19:20
pakokonka
Oh crap, we are doomed.
dafusion's Avatar - Comment posted on 10/11/2007 19:47
dafusion
F*cken EA and their damned studio buying/destroying moves.
Fading Star's Avatar - Comment posted on 10/11/2007 19:59
Fading Star
...PLEASE DON"T SCREW THIS UP, EA!
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