EA Wanted to Purchase Valve
The New York Times is reporting that EA was apparently willing to pay $1 billion in order to purchase Valve Software, this comes after seeing a list of opportunities that Gabe Newell (Co-founder of Valve) has had to sell the company.
They explain, “Valve has been pursued over the years by Electronic Arts, which would very likely have valued Valve at well over $1 billion had the talks progressed that far,” The articles continue to state that they have come to this information from the courtesy of “two people with knowledge of the discussion who spoke on condition of anonymity because the talks were private”.
However this never took place, reasons as to why this apparent offer fell through have not been released. EA’s COO Peter Moore has recently voice his major support behind the company announcing they are “on the cutting edge of the future of this industry”. Even though EA might have been happy with this offer, Gabe Newell has been convinced that his company would “disintegrate” if it was ever bought out by an outside source. “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,’ Newell previously stated.
EA was apparently greatly under-offering when it comes to Valve, as Wedbush Securities analyst Michael Pachter estimated that Valve is currently worth $2.5 billion. This impressive figure it mainly thanks to its popular Steam digital distribution service on the PC, it is also believe that this is where the majority of Valve’s money comes from rather than the sales of their own games.
Gabe Newell isn’t impressed
There has been rumours recently that Valve is possibly entering the console race and only recently released Steam Big Picture mode, to accommodate PC users who use their TV as their gaming screen.
Source: IGN
Jamie Briggs looks after Analog Addiction where you can find all his latest reviews, interviews and features and also like them on Facebook. Also follow his daily life on Twitter @AnalogAddiction and his videos on YouTube.