Electronic Arts has announced that it has completed its purchase of VG Holding Corp, making final the company's acquisition
of BioWare and Pandemic Studios under the EA Games label, with which the company gains ten new franchises based on six wholly-owned IP.
EA Games president Frank Gibeau will oversee both studios within his organization, and BioWare's Ray Muzyka and Greg Zeschuk have each been named as vice presidents of EA and co-general managers of BioWare. Similarly, Pandemic's Andrew Goldman and Josh Resnick have each been named vice presidents of EA and co-general managers of Pandemic, while Greg Borrud has been named vice president of EA and chief production officer of Pandemic Studios.
EA has said it aims to broaden its portfolio through the acquisition of the two labels, hoping to attain a competitive position in the RPG, action and adventure genres. EA agreed to pay up to $620 million in cash to the stockholders of the studios' parent, VG Holding Corp, and also said it would issue up to an additional $155 million in equity to certain vested or high-performing employees of VG Holding Corp.
EA also assumed outstanding VG Holding Corp. stock options, and agreed to lend VG Holding Corp. up to $35 million through the closing of the acquisition.
Said Gibeau, “BioWare Corp. and Pandemic Studios are two world-class studios and bring strong, highly compatible cultures of creative excellence to the EA Games Label. Their strengths in the RPG, action and adventure genres further broadens EA’s portfolio, and reinforces our commitment to creating the world’s greatest interactive entertainment.”