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EA Wanted Valve Software for Over $1 Billion

By - Source: The New York Times | B 44 comments

EA reportedly attempted to buyout Valve for more than 1 billion USD.

If there's one thing we can count on, it's that Valve Software boss Gabe Newell will tell it like it is. He's been extremely vocal about Microsoft's upcoming Windows 8 platform, calling the new OS a "catastrophe." Now Newell reportedly said he'd rather see Valve disintegrate over time rather than sell out to a company like Electronic Arts. Honestly, that's good to hear.

In the New York Times article which also revealed the Big Picture beta and Valve's VR goggles, two unnamed sources – wanting to remain anonymous – admitted that gaming giant Electronic Arts has pursued Valve Software for years. The publisher would have valued Valve at well over $1 billion USD had talks progressed to that point, sources close to the discussions claimed.

But Newell admitted that Valve would likely disintegrate – that its independent-minded workers would scatter – before a multi-billion dollar publisher would swoop in and purchase the Source Engine studio. "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,'" he said.

Valve Software, the studio behind the Half-Life, Portal, Team Fortress and Left4Dead titles, is valued at $2.5 billion USD according to Michael Pachter, an analyst at Wedbush Securities. There's indication that EA made its offer long before Steam became a huge hit and seemingly took control of the digital distribution market. The denial of a buyout may have also been what prompted EA to develop its own distribution platform.

EA has been on an acquisition spree over the last few years, scooping up Chillingo, Firemint, Playfish, and even PopCap. Some of its biggest acquisitions of late have been Mythic Entertainment and DICE back in 2006, and JAMDAT Mobile in 2005. However EA's largest purchase to date was in 2007, as it shelled out $860 million for VG Holding Corp which at the time owned Bioware and Pandemic Studios.

Despite their slight rivalry on the digital distribution front, EA and Valve remain on somewhat friendly terms, as the publisher recently served as distributor of Portal 2 for the console versions.

 

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Top Comments
  • 36 Hide
    hardcore_gamer , September 11, 2012 3:34 PM
    He got balls. Gotta love Valve.
  • 34 Hide
    reviewer889 , September 11, 2012 4:32 PM
    Dear EA,

    Nobody likes you. Please go away.

    Sincerely,
    Everyone
  • 27 Hide
    greghome , September 11, 2012 3:39 PM
    Honestly, the saddest thing to happen to the Battlefield series was when EA bought DICE.
    Before that, we could actually mod the game.....and get free maps from the community and Developer.......and more maps from each expansion pack we purchase.....instead of just 4
Other Comments
    Display all 44 comments.
  • 11 Hide
    boju , September 11, 2012 3:32 PM
    http://nooooooooooooooo.com/

    ^^ that even EA considered

    Good onya Gaben
  • 36 Hide
    hardcore_gamer , September 11, 2012 3:34 PM
    He got balls. Gotta love Valve.
  • 22 Hide
    EDVINASM , September 11, 2012 3:37 PM
    Am sure there will be few offended but IMO Valve has much more of real Intellectual property than EA. By buying them out it would just destroy the brand. I love Valve and always did since 199x when HL first came out. EA has been always for the crowds who well.. lets be honest not always were the smartest gamers - kids, teens, trigger happy ones etc. Have just finished Crysis 1 and 2 - what a pile of overhyped rubbish. Don't get me started on NFS franchise etc etc..
  • 27 Hide
    greghome , September 11, 2012 3:39 PM
    Honestly, the saddest thing to happen to the Battlefield series was when EA bought DICE.
    Before that, we could actually mod the game.....and get free maps from the community and Developer.......and more maps from each expansion pack we purchase.....instead of just 4
  • 20 Hide
    Johmama , September 11, 2012 3:42 PM
    GAAAAABE!!!!!!!


    I love you.
  • 21 Hide
    dextermat , September 11, 2012 3:47 PM
    EA should write a book: How to ruin a buggy software even worse..... with SECUREROM
  • 20 Hide
    upgrade_1977 , September 11, 2012 3:51 PM
    So origin was made out of jealousy...
  • 21 Hide
    boju , September 11, 2012 3:56 PM
    Gaben, point that minigun at EA headquarters please!
  • 18 Hide
    southernshark , September 11, 2012 3:59 PM
    EA is a crap company with crap games.
  • -1 Hide
    Pinhedd , September 11, 2012 4:10 PM
    greghomeHonestly, the saddest thing to happen to the Battlefield series was when EA bought DICE.Before that, we could actually mod the game.....and get free maps from the community and Developer.......and more maps from each expansion pack we purchase.....instead of just 4


    The mod tools for the early Battlefield games were developed by the community after reverse engineering the game data itself. They were not officially supported by DICE
  • 14 Hide
    bigdragon , September 11, 2012 4:11 PM
    If EA had acquired Valve I would have stopped playing video games. If EA acquires them in the future I'll stop playing video games. EA does nothing but run good ideas into the ground and browbeat industry talent.

    Good job, Gabe.
  • 21 Hide
    xenol , September 11, 2012 4:14 PM
    EA just needs to leave Valve alone. Period. Valve is a developer, they know how to treat gamers. EA (by itself) is just a publisher, they only know money.
  • 8 Hide
    mmstick , September 11, 2012 4:14 PM
    Let's not forget that Gabe Newell's own net worth is around $1.5 billion.
  • 5 Hide
    RADIO_ACTIVE , September 11, 2012 4:23 PM
    Go fat bastard go!!!!
  • 13 Hide
    DroKing , September 11, 2012 4:27 PM
    I said this once on other site. I will smash my pc to pieces and throw everything related to gaming out in trash if this ever happen.
  • 8 Hide
    thecolorblue , September 11, 2012 4:27 PM
    thankfully it didn't happen
  • 34 Hide
    reviewer889 , September 11, 2012 4:32 PM
    Dear EA,

    Nobody likes you. Please go away.

    Sincerely,
    Everyone
  • 16 Hide
    faster23rd , September 11, 2012 4:38 PM
    Wow, now that's real resolve. Valve was always among those game companies that became hugely successful without compromising their dignity, creativity, and commitment to the community. What they are and what they stand for in the industry is something I really appreciate.
  • 20 Hide
    zeph , September 11, 2012 5:04 PM
    Valve should buy EA
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