Titanfall Developer Respawn Entertainment Has Been Acquired by EA for $455 Million
Respawn Entertainment, developer of the Titanfall franchise, has been acquired by Electronic Arts (EA) in a surprising massive buyout.
The agreement will see the publishing giant pay $151 million in cash upfront, up to $164 million in long-term equity, and a maximum of $140 million in performance bonus. The total purchase price could be worth as much as $455 million provided that Respawn Entertainment is able to achieve its incentive targets in the future.
According to Kotaku, the developer was first approached by South Korean publisher Nexon for a buyout. EA was then apparently left to match the unknown sum within a month, which the company chose to do so in the end.
“EA will provide us with more resources, access to new technologies, and expertise in areas that Respawn values for future growth,” founder Vince Zampella said in an open letter. “Respawn will retain the same creative freedom we’ve always had. This is an opportunity to achieve more together through the unique strengths we each bring to the table.”
The acquisition announcement confirms that Respawn Entertainment is currently working on three games. This includes a third installment in the Titanfall franchise, a new Star Wars game, and a virtual reality project for the Oculus Rift.
Following an abysmal reception to Titanfall 2, there were rumors that EA might be washing its hands off the franchise. The sequel was actually hailed by critics but was sandwiched between Battlefield 1 and Call of Duty: Infinite Warfare. The low sales for an actual good game was majorly blamed on the release date chosen by the publisher. It is comforting that EA still holds Respawn Entertainment in high regard.