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EA Games acquires Titanfall developer Respawn Entertainment
EA pays $151 million US in cash to take over the studio of two Infinity Ward founders
Thursday November 9th 2017 - 22:37 GMT
EA Games acquires Titanfall developer Respawn Entertainment
EA pays $151 million US in cash to take over the studio of two Infinity Ward founders
Thursday 9 November 2017 - 22:37 GMT

EA Games has announced that it has acquired Respawn Entertainment. The studio is known for developing the shooter game Titanfall.

In a recent press release, EA Games states that it has reached an agreement to acquire the studio.
Respawn Entertainment CEO Vince Zampella will stay with the studio and noted that the acquisition ensures that EA Games will continue to "bring the resources and support we [ed: the studio] need for long term success, while still keeping our culture and creative freedom."

Under the agreement, EA Games will pay $151 million US in cash, and up to $164 million US in long-term equity in the form of restricted stock units to employees, which will vest over four years.

In addition, EA may be required to pay additional variable cash consideration that is contingent upon achievement of certain performance milestones, relating to the development of future titles, through the end of calendar 2022. The additional consideration is limited to a maximum of $140 million US.

Respawn Entertainment was founded by Infinity Ward founders Jason West and Vince Zampella in 2010.

In the same year the duo became involved in a royalty dispute case with its parent company Activision, which caused the company to fire both West and Zampella. The duo formed the game development studio Respawn Entertainment not long after.

In 2012 Activision wrote a $42 million US cheque in an attempt to stop further litigation. Both parties eventually settled out of court. The terms of the settlement are still confidential.

The studio has only released two titles since its founding in 2010: Titanfall in 2014 and Titanfall 2 in 2016. The first game received mixed user reviews, while the second game performed better.

The studio is currently working on a new Titanfall game, a game "set in the Star Wars universe", and an unannounced virtual reality game. The Star Wars game could be the project that EA Games took away from Visceral Games when it closed the studio last month.
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About the author
Raymond Bakker
Journalist and Software Developer at Moonlight Multimedia. He covers the latest video games news from indie to virtual reality and has been actively involved in the video games industry since the early 2000s.

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