DigitalWolf
Member
- Feb 3, 2001
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Correct me if I'm wrong here, but I was always under the impression that EA negiotiated the buyout of BioWare/Pandemic with Elevation Partners, the private equity company that invested into the BioWare/Pandemic partnership.
If Elevation Partners had the majority interest, they potentially could have not even needed BioWare's or Pandemics input on the sale. All they really needed was the majority interest to get the deal through. Now we will probably never know for certain, but something similar happened to AG Edwards. Edwards allowed more than 50% of private shares to multiple investors outside his family and one morning he woke up and found he no longer owned his company.
Well after I read your post I was looking around and saw that EP spent around 300 Million to form a partnership between BioWare and Pandemic (which was called VG Holding Corp).
Then in the aquisition of "VG Holding Corp" it does mention that EP recieved about twice what they invested from EA. Which was 600+ million in cash, another 100+ million in stock options and some mention of a 35 Million dollar loan.
So I guess what you say its likely correct.. but just goes back to why was the partnership with Pandemic made. I think I remember a press release at the time but to be honest I didn't follow BioWare that much at the time.
My comments about the privately owned company were actually inspired by a BioWare employees before the EA buyout. Where one specificly said they were a privately owned company and didn't have to answer to anyone (someone was asking for information... likely about TOR after they announced it).
It would seem pretty obvious (to me now) that after Elevation Partners came in.. BioWare was already not "BioWare". Then EA simply bought VG holdings from Elevation Partners and instantly owned BioWare/Pandemic.
So if I said anything bad to anyone I apologize.. but the point all along to me was.. The moment you allow some outside force to own more of your company than "you"... its no longer your company and this is exactly what happens.