EA Mythic Acquisition: Looks Cheap Now
I’ve been reflecting on the recent success of Warhammer Online. If there numbers they’ve been talking about (over a million subscriptions) holds–and grows–it’s going to make the acquisition of Mythic look cheap in retrospect. I was just reviewing the 2008 10-K Report for Electronic Arts, which discloses that purchase of Mythic was for $76MM in cash. At $15/month, Warhammer could be a $15MM/month cash generator right out of the gate (to say nothing of the initial sales of the retail box). Now, imagine if it keeps growing from there… The next few months will really show whether it has the long-term staying power of WoW.
In 2003, TA Associates led a $32MM investment in Mythic… Not a lot of room in the $76MM purchase for this to have been a great ROI for TA. For Electronic Arts, it looks like they made a great steal.
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