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EA attempts to purchase Valve

By Samuel 'DarthBotto' Horton
Sep 14, 2012 23:01

ImageElectronic Arts has made a bid on Valve Corporation for one billion dollars. The latter prompty declined.

Electronic Arts, the developer of some of the most popular annually-released console shooters and electronic sports games, has made a bid valued at one billion dollars on Valve Corporation. The latter, known for developing some of the most-popular esport titles, including Counter-Strike, Counter-Strike: Source, Counter-Strike: Global Offensive, Dota 2 and Team Fortress 2, promptly declined this offer. Gabe Newell, the managing director and owner of Valve, stated, "It’s way more likely we would head in that direction than say, ‘Let’s find some giant company that wants to cash us out and wait two or three years to have our employment agreements terminate'".

In addition to the scrutiny Valve has conveyed towards EA for their policies, the Seattle-based developer has expressed disdain for the amount they were offered for a buyout. According to a report by Forbes in March of this year, Valve was valued at over three billion dollars, putting Gabe Newell's networth in the neighborhood of 1.5 billion dolars. Essentially, the offer made by EA would not even buy Gabe Newell's stake in the company.

Valve, however, is virtually immune to a hostile takeover. The company is an independent developer- the largest in the world, in fact; their stock cannot be traded in a public market. Economists predict that Valve's stock will grow exponentially over the next few years, as the company has begun development of gaming hardware. Currently, they are in the process of developing a prototype for advanced optical gaming equipment. Rumors, perpetuated by designs, patents and recent job postings, predict that Valve may be looking to develop their own console, to a fill a void in the market perceived by them.

Source: Examiner



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