Gaming megapublisher and dev sweat shop operator Electronic Arts plans to buy VG Holding Corp, owner of BioWare and Pandemic Studios, for $860m.

The sum will give EA ownership of both BioWare's and Pandemic's IPs, including Jade Empire, Mass Effect Dragon Age and Baldur's Gate.

EA will pay $620m in cash to stockholders, as well as $155m in equity to "certain employees of VG Holding," assume $50m in outstanding stock, and loan the company up to $35m.

"These are two of the most respected studios in the industry and I'm glad to be working with them again. They'll make a strong contribution to our strategic growth initiatives on quality, online gaming and developing new intellectual properties," said John Riccitello, EA CEO. "We also expect this will drive long-term value for our shareholders."

Gaming fan concerns over EA's, um, quantitative approach to the market may not be unfounded. The BBC reports (http://news.bbc.co.uk/1/hi/business/7041229.stm) that EA plans to release four or five games a year from the new studios.

The acquisition is subject to the regular gang of customary closing conditions, including regulatory approvals. It's expected to close in January 2008. ®

Related stories

Activision and Vivendi Games merge into Activision Blizzard (3 December 2007)
http://www.theregister.co.uk/2007/12/03/vivendi_activision_merge_into_activision_blizzard/
Extraordinary popular delusions and the madness of in-game ads analysts (1 December 2007)
http://www.reghardware.co.uk/2007/12/01/ea_chief_says_google_hypes_game_ads/
Xbox chief abandons Microsoft for EA Sports (17 July 2007)
http://www.theregister.co.uk/2007/07/17/peter_moore_leaves_microsoft_for_ea/
Video game legend hopes to change mankind (14 March 2007)
http://www.theregister.co.uk/2007/03/14/wright_spore_sxsw/
Taiwan, Hong Kong to get PS3 before Europe (3 November 2006)
http://www.reghardware.co.uk/2006/11/03/sony_announces_ps3_taiwan/
Massive lands ad deal with EA Games (8 September 2006)
http://www.theregister.co.uk/2006/09/08/massive_eagames_deal/
Xbox 360: not big in Japan (15 December 2005)
http://www.theregister.co.uk/2005/12/15/xbox_360_not_big_in_japan/