Electronic Arts Drops $455 Million on Respawn Entertainment

Top video game company Electronic Arts (NASDAQ: EA) recently announced the acquisition of game development studio Respawn Entertainment, the maker of the popular Titanfall franchise, which EA has published under its own label. The news comes shortly after EA announced it was shutting down Visceral Games, the unit working on a major Star Wars title for EA.

EA will pay $151 million in cash up front for Respawn, with an additional $164 million in long-term equity for employees. There's also a maximum cash consideration of $140 million in incentives dependent upon Respawn's performance through 2022. That's a potential price tag of $455 million for the small developer.

Image source: EA.com

Source: Fool.com