Video game developer Electronic Arts Incorporated has announced plans to pay up to $775 million in cash and stock to acquire two software studios from Elevation Partners: BioWare Corporation and Pandemic Studios. Together, the studios have a total of 10 games under development and employ about 800 people in Los Angeles and Austin, Texas, as well as in Canada and Australia. The acquisition, which is subject to customary closing conditions and regulatory approval, is expected to close in January.
Microsoft Corporation is planning to publish BioWare"s Mass Effect game next month, and the studio is in the early stages of developing a multiplayer online game. Pandemic is planning to release "Mercenaries 2: World in Flames" and "Saboteur." EA expects the deal to lower its 2008 earnings by about 30 to 40 cents per share.
News source: Physorg