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Article #701

Re: Origin Systems buyout

#701
From: Bits of Magic
Date: Mon, 14 Sep 1992 18:35
36 lines
2143 bytes
>From: cat@wixer.cactus.org (Dr. Cat)
>>
>>   Origin Systems put out a press release today announcing that they have
>>made an agreement to become part of Electronic Arts in exchange for a stock
>>swap.  Whether this will have much effect on the company will remain to be
>>seen...
>>               Dr. Cat

>Whaaat?  That's certainly very suprising.  I can't see why Origin would do it.

How about because:
	1) Origin has the world's most expensive demo in Strike Commander.
	2) Many of the people who really did the work at Origin have recently
		left.
	3) The way Origin financed big expensive products like Ultima VII and
		Strike Commander was by using big advances on cart products
		that haven't been done.

What I can't figure out is why Electronic Arts would be interested in paying
$40 million for a company that has to be at least $2 - $5 million in the hole
(in the sense of spending that money on SC, which is reportedly dead, and
having spent advances on products that haven't been produced), and has lost
much of the creative talent that produced their recent hit (and not-so-hit)
products.  Maybe they just got tired of Richard complaining everytime they
produced a tile-based map game...

Now of course EA's stock has jumped 2-4 pts since the announcement, so maybe
there's something (of course there's something) I don't know or haven't
considered...

	evan
****************************************************************************
* Evan Robinson                * "I never get sick of zombies.  I just get *
* herosoftware@cup.portal.com  *   sick of producers."                     *
* GEnie: EVANROB               *                        George Romero      *
****************************************************************************
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Path: arc1-ca.pugleaf.net!sparky!uunet!portal!cup.portal.com!HeroSoftware
From: HeroSoftware@cup.portal.com (Bits of Magic)
Newsgroups: rec.games.programmer
Subject: Re: Origin Systems buyout
Message-ID: <65855@cup.portal.com>
Date: Mon, 14 Sep 92 11:35:13 PDT
Organization: The Portal System (TM)
References:  <716404431.14118@zooid.guild.org>
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