creating value presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...sim city +...
TRANSCRIPT
![Page 1: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/1.jpg)
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![Page 3: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/3.jpg)
![Page 4: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/4.jpg)
AngelStudios
byTakeTwo
(2002)$28M
Luxoflux
byAc3vision
(2002)$9M
![Page 5: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/5.jpg)
Shiny
byAtari
(2002)$47M
BlackBox
byEA
(2002)$14M
![Page 6: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/6.jpg)
AngelStudios
byTakeTwo
(2002)$28M
BlackBox
byEA
(2002)$14M
![Page 7: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/7.jpg)
Rare
byMicroso?
(2002)$375M
Traveller’sTales
by Warner
(2007) $210M
![Page 8: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/8.jpg)
BiowarePandemicbyEA(2007)
RarebyMicroso?
(2002)Traveller’sTales
byWarner(2007)
$210M
$375M
$775M
![Page 9: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/9.jpg)
![Page 10: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/10.jpg)
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Profit
![Page 12: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/12.jpg)
![Page 13: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/13.jpg)
Let’s talk about me!
![Page 14: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/14.jpg)
“Ac3visioncon3nuestogrowanddrivegreatervalueforourshareholdersbybroadeningourporKolioandenteringnewgamingcategorieswithstrongglobalappeal.”Ac3visionCEORobertKo3ckonacquisi3onofBizarreCrea3ons
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Rule Number 2 YOU ARE NOT THE CENTER OF A PUBLISHER’S
UNIVERSE.
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• Howdowegrowourbusiness?
• Howdowekeepthecompe33onfromdevouringus?
• HowdowecomeoutwiththenextHalo/GrandThe?Auto/WorldofWarcra??
• Howdowekeepourcurrentprojectson3meandonbudget?
• HowdoIkeepfrombeingfired?
Execu3
ve
Middle
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“Wewillcon3nuetoevaluatepoten3alacquisi3oncandidatesastothebenefittheybringtous”Ac3vision2007AnnualReport
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Rule Number 3 PUBLISHERS BUY DEVELOPERS BECAUSE THEY
NEED THEM—NOT BECAUSE THEY WANT THEM.
Relationships are important, but strategic v
alue
trumps.
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Development Expertise
Acquisitions
IP Acquisitions
Franchise Acquisitions
Strategic Value Acquisitions
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“VicariousVisions’talenteddevelopmentteamandproprietarytechnologycombinedwithourinternalsystemsandcapabili3eswillplayakeyroleinAc3vision’scon3nuedleadershiponnext‐genera3onplaKorms.”KathyVarbeck,Ac3vision
![Page 21: Creating Value Presentation 4-30-09twvideo01.ubm-us.net/o1/vault/gdccanada09/slides/...Sim City + Westwood EA 1998 $122M Command and Conquer DICE EA 2004 $93M Battlefield RedOctane](https://reader033.vdocument.in/reader033/viewer/2022042413/5f2cc1b382bfd47bc47da70d/html5/thumbnails/21.jpg)
“Theseacquisi3onshavefurtherenabledustoimplementourmul3‐plaKormdevelopmentstrategybybolsteringourinternalproductdevelopmentcapabili3esforconsolesystems…”Ac3vision2007AnnualReport
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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
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“SmartM&Abringsnewcrea3veteamsandintellectualproper3eswhichcanbeleveragedbytheuniquestrengthofEA’sglobalinfrastructure…”ElectronicArts2008AnnualReport
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“Theacquisi3on[ofIllusionsSo?ware]reflectsourstrategicfocusonowninghigh‐valueintellectualpropertyaswecon3nuetoexpandourporKoliooftripleA3tles.”BenFelder,CEOTakeTwo
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“Theacquisi3onofBigHugeGamesunderscoresourstrategyofexpandingbothinternaldevelopmentcapabili3esandourporKolioofownedintellectualproper3es.”THQ2008AnnualReport
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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
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“Thisacquisi3onprovidesAc3visionwithanearlyleadershipposi3oninmusic‐basedgaming,whichweexpectwillbeoneofthefastestgrowinggenresinthecomingyears”Ac3vision2007AnnualReportontheacquisi3onofRedOctane
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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
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“Rarehasareputa3onfordevelopingverysolid,high‐qualityfranchises,somethingthat’sbeenreallylackingfortheXbox.”IDC
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“Wecompletedtheacquisi3onofBiowareandPandemicStudios,whichtogetherbroughttoEA10newintellectualproper3esandaddedtoourteamofincrediblytalentedpeople…”ElectronicArts2008AnnualReport
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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
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Characteris3csStudio
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Characteris3csStudio
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Characteris3csStudio
?
?
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Characteris3csStudio
?
?
?
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Development/
Tech
IP Franchise StrategicValue
$5‐$30M
$30‐50M
$100‐200M
$200M+
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