Electronic Arts Gains Controlling Interest in DICE

Electronic Arts' offer to the board of Digital Illusions CE, the developer of such games as Battlefield 1942, Battlefield Vietnam, and RalliSport Challenge, has been accepted, granting EA a controlling stake in the software developer. The offer was initially submitted on November 14, 2004, and recently expired with a successful outcome, despite previous reported problems which made some doubt whether EA could reach 50% ownership. EA's original share of 18.9% of the company has been augmented with its purchase of 3,235,053 shares purchased directly from the shareholders, which is equivalent to 32% of the stock and votes in DICE. Additionally, EA bought up 898,264 shares in trading, for another 8.9%, which gives it 59.8% of the stock and votes, a total which could rise to 67.3% if EA exercises its option to claim additional warrants. Though EA now owns a controlling stake in DICE, it has reserved the right to purchase additional shares in the company should it so desire. As for DICE's software franchises, the Battlefield series was already published by EA, and it seems likely that the Rallisport games will now also fall into the software giant's stable.