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AngelStudios
byTakeTwo
(2002)$28M
Luxoflux
byAc3vision
(2002)$9M
Shiny
byAtari
(2002)$47M
BlackBox
byEA
(2002)$14M
AngelStudios
byTakeTwo
(2002)$28M
BlackBox
byEA
(2002)$14M
Rare
byMicroso?
(2002)$375M
Traveller’sTales
by Warner
(2007) $210M
BiowarePandemicbyEA(2007)
RarebyMicroso?
(2002)Traveller’sTales
byWarner(2007)
$210M
$375M
$775M
Profit
Let’s talk about me!
“Ac3visioncon3nuestogrowanddrivegreatervalueforourshareholdersbybroadeningourporKolioandenteringnewgamingcategorieswithstrongglobalappeal.”Ac3visionCEORobertKo3ckonacquisi3onofBizarreCrea3ons
Rule Number 2 YOU ARE NOT THE CENTER OF A PUBLISHER’S
UNIVERSE.
• Howdowegrowourbusiness?
• Howdowekeepthecompe33onfromdevouringus?
• HowdowecomeoutwiththenextHalo/GrandThe?Auto/WorldofWarcra??
• Howdowekeepourcurrentprojectson3meandonbudget?
• HowdoIkeepfrombeingfired?
Execu3
ve
Middle
“Wewillcon3nuetoevaluatepoten3alacquisi3oncandidatesastothebenefittheybringtous”Ac3vision2007AnnualReport
Rule Number 3 PUBLISHERS BUY DEVELOPERS BECAUSE THEY
NEED THEM—NOT BECAUSE THEY WANT THEM.
Relationships are important, but strategic v
alue
trumps.
Development Expertise
Acquisitions
IP Acquisitions
Franchise Acquisitions
Strategic Value Acquisitions
“VicariousVisions’talenteddevelopmentteamandproprietarytechnologycombinedwithourinternalsystemsandcapabili3eswillplayakeyroleinAc3vision’scon3nuedleadershiponnext‐genera3onplaKorms.”KathyVarbeck,Ac3vision
“Theseacquisi3onshavefurtherenabledustoimplementourmul3‐plaKormdevelopmentstrategybybolsteringourinternalproductdevelopmentcapabili3esforconsolesystems…”Ac3vision2007AnnualReport
Development Expertise Acquisitions
Studio Publisher Year Amount Reason
Headgate Sierra 1996 $8‐10MEst. Golf
Reflec?ons GT 1998 2.28MStock Racing/Auto
AccessSoGware MicrosoG 1999 NA Golf
RainbowStudios
THQ 1999 $44M Vehicle/physics/mature
BlackBox EA 2002 $14MEst. Racing
AngelStudios TakeTwo 2002 $28M Racing+
VicariousVisions
Ac?vision 2005 $5M+ Handheld
Beenox Ac?vision 2005 $1MEst. Conversions
“SmartM&Abringsnewcrea3veteamsandintellectualproper3eswhichcanbeleveragedbytheuniquestrengthofEA’sglobalinfrastructure…”ElectronicArts2008AnnualReport
“Theacquisi3on[ofIllusionsSo?ware]reflectsourstrategicfocusonowninghigh‐valueintellectualpropertyaswecon3nuetoexpandourporKoliooftripleA3tles.”BenFelder,CEOTakeTwo
“Theacquisi3onofBigHugeGamesunderscoresourstrategyofexpandingbothinternaldevelopmentcapabili3esandourporKolioofownedintellectualproper3es.”THQ2008AnnualReport
Intellectual Property Acquisitions
Studio Publisher Year Amount Reason
Papyrus Sierra 1995 $40M NASCAR
Redstorm Ubi 2000 $55M TomClancy
Shiny Infogrames 2002 $47M TheMatrix
Harmonix* MTV 2006 $175M Music/Patents
Traveller’sTales*
Warner 2007 $210M Lego
“Thisacquisi3onprovidesAc3visionwithanearlyleadershipposi3oninmusic‐basedgaming,whichweexpectwillbeoneofthefastestgrowinggenresinthecomingyears”Ac3vision2007AnnualReportontheacquisi3onofRedOctane
Franchise Acquisitions
Studio Publisher Year Amount Reason
Papyrus Sierra 1995 $40M NASCAR
Maxis EA 1997 $125M Sim City +
Westwood EA 1998 $122M Command and Conquer
DICE EA 2004 $93M Battlefield
RedOctane Activision 2006 $99M Guitar Hero
“Rarehasareputa3onfordevelopingverysolid,high‐qualityfranchises,somethingthat’sbeenreallylackingfortheXbox.”IDC
“Wecompletedtheacquisi3onofBiowareandPandemicStudios,whichtogetherbroughttoEA10newintellectualproper3esandaddedtoourteamofincrediblytalentedpeople…”ElectronicArts2008AnnualReport
Strategic Purpose and Value Acquisitions
Studio Publisher Year Amount Reason
Rare Microsoft 2002 $375M Credibility
Lionhead Microsoft 2006 NA Credibility
Bioware and Pandemic
EA 2007 $775M Substantial Growth
Traveller’s Tales Warner 2007 $210M Proven Development Plus License
Harmonix MTV 2007 $175M Strategic Genre
Characteris3csStudio
Characteris3csStudio
Characteris3csStudio
?
?
Characteris3csStudio
?
?
?
Development/
Tech
IP Franchise StrategicValue
$5‐$30M
$30‐50M
$100‐200M
$200M+
ThankyouDanLeeRogers
dan@danleerogers.com
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