The joys of EA (no spam)
Posted: Thu Nov 12, 2009 1:14 pm
First, there's this news, which you'll definitely want to read. Or briefly:
After lengthy negotiations, Electronic Arts closed it’s anticipated acquisition of social gaming startup Playfish for $275 million in cash. An additional $25 million in stock will be set aside for retaining the top talent at the startup, and another $100 million in earnouts are part of the deal as well if the business hits certain milestones. So the total value of the deal could amount to as much as $400 million when all is said and done...
Must be doing pretty well these days, that EA! Oh, but now, there's also this. Or once more, in brief:
With the loss of nearly 1,500 jobs at Electronic Arts, inevitably some game projects were going to be cut as well. Indeed, during a conference call EA CEO John Riccitiello confirmed that "over a dozen" titles got the ax and that the company is looking to reduce its overall game pipeline considerably...."The way we are looking at it now, there are approximately 50 there this year, and something in the high 30s next year. So when you consolidate this thing, it is about a 50 percent cut over two years."
Soooo....they had $400 million to acquire another company, but cut 1500 jobs and product by 50% in the next two years. Presumably they just know the games they're buying are much better than the games they're, you know, developing, and the people who are developing them are just too dumb to be kept on and perhaps get sent to perfection, as represented by Playfish.
Who can say? I'm just an ignorant little old guy with a titanium-headed rocket-launching cane, but it sure sounds like some unemployed people are going to be experiencing a lot less cheer this holiday season while EA's executives find plenty of cash to buy another company to suck dry.
After lengthy negotiations, Electronic Arts closed it’s anticipated acquisition of social gaming startup Playfish for $275 million in cash. An additional $25 million in stock will be set aside for retaining the top talent at the startup, and another $100 million in earnouts are part of the deal as well if the business hits certain milestones. So the total value of the deal could amount to as much as $400 million when all is said and done...
Must be doing pretty well these days, that EA! Oh, but now, there's also this. Or once more, in brief:
With the loss of nearly 1,500 jobs at Electronic Arts, inevitably some game projects were going to be cut as well. Indeed, during a conference call EA CEO John Riccitiello confirmed that "over a dozen" titles got the ax and that the company is looking to reduce its overall game pipeline considerably...."The way we are looking at it now, there are approximately 50 there this year, and something in the high 30s next year. So when you consolidate this thing, it is about a 50 percent cut over two years."
Soooo....they had $400 million to acquire another company, but cut 1500 jobs and product by 50% in the next two years. Presumably they just know the games they're buying are much better than the games they're, you know, developing, and the people who are developing them are just too dumb to be kept on and perhaps get sent to perfection, as represented by Playfish.
Who can say? I'm just an ignorant little old guy with a titanium-headed rocket-launching cane, but it sure sounds like some unemployed people are going to be experiencing a lot less cheer this holiday season while EA's executives find plenty of cash to buy another company to suck dry.
