ELECTRONIC ARTS ACQUIRES ANOTHER GAME DEVELOPER
Latest developer to be acquired by publisher Electronic Arts (EA) is Liverpool-based Studio 33, best known for console racing titles including Destruction Derby Arenas, Formula One, Newman- Haas Racing. But EA said those particular games, developed for other publishers, were “not part of the transaction” for which financial terms weren’t disclosed.
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EA said “the primary focus of development at EA Northwest will be driving games.” EA U.K. Gen. Mgr. David Byrne is overseeing new studio, while development is being led by Studio Mgr. Chris Gibbs and John White is serving as head of Technology Group.
Publisher said Studio 33’s team of about 30 employees would “join the existing team at EA Northwest in nearby Warrington.” Company said both development teams -- “a total of 75 employees - - are scheduled to move to a new facility in Warrington shortly.” EA said it had about 4,000 employees including “roughly 2,300 creative people in its worldwide studio organization.” EA Exec. Vp Bruce McMillan said: “The new team is already working on several projects that will be announced in the future.”
Published report, meanwhile, said Credit Suisse First Boston and First Albany analysts increased their EA 2nd-quarter revenue estimates Wed. because of strength in publisher’s distribution and publishing line of games. Wedbush Morgan Securities analyst Michael Pachter said in research note Thurs. he believed EA next week would report 2nd-quarter revenue of $520 million and 45? earnings per share (EPS), vs. consensus analyst estimates of revenue of $510 million and 44?, and EA’s own estimate of $470- $510 million and 35?-42? EPS.
Separately, N.Y.-based ConnectivCorp said it had executed letter of intent with preliminary terms and conditions of proposed merger of ConnectivCorp and Majesco Sales, videogame publisher based in Edison, N.J. ConnectivCorp said stock deal would result in Majesco shareholders’ owning 80% of common and preferred stock of ConnectivCorp.
Majesco spokeswoman said transaction was “reverse merger,” saying: “Rather than go through the lengthy process of performing an IPO, Majesco plans to merge with ConnectivCorp, a company which is already public but has no operations, employees or business of its own. This type of company is known as a ‘public shell.’ Once a large amount of due diligence is favorably completed on both sides, and the merger is approved, Majesco will be a public company.” But she said her company would “still be known as Majesco and maintain its current management.” Goal of Majesco, she said, was “to become a Top 10 videogame publisher” and going public could speed up that goal. But Majesco didn’t say why it was interested in merging with ConnectivCorp.
Few details were known about ConnectivCorp and executives couldn’t be reached for comment. Company lost $253,000 in quarter ended June 3, according to Yahoo Finance (YF). Data provided by YF and Hoover’s Online (HO) said company had only 2 employees and was headed by CEO Elliot Goldman and Chmn. Robert Ellin. YF and Ho said company formerly was known as Spinrocket.com and originally was in music business but exited it to concentrate on software-based service providing data on consumers of CDs and other products to marketers. Company later entered health care industry and introduced SexHealth.com, offering information on fertility and sexual dysfunction, among other topics, YF and HO said, adding: “ConnectivCorp has been unable to connect its medical Internet program with meaningful revenue and [has been] unsuccessful in acquiring Aqua Development, an operator of 7 restaurants.” They said Ellin owned about 30% of company.