By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony Discussion - Sony acquires Bungie for $3.6 billion - staying multiplatform

the-pi-guy said:

Sony mentioned this to investors:
Bungie is a private company, the majority of whose shares are owned by its employees. So the payment of the consideration is structured to incentivize the shareholders and other creative talent to continue working at Bungie after the acquisition closes. Approximately one-third of the $3.6 billion consideration for acquisition consists primarily of deferred payment to employee shareholders, conditional upon their continued employment and other retention incentives.

These amounts will be paid over the course of several years after the acquisition closes, and will be recorded as expenses for accounting purposes. We expect about two-thirds of these deferred payments and other retention incentives to be expensed in the first two years after the acquisition closes.

So ~$2.4 billion for the actual buyout, $1.2 billion largely goes to employees over several years.  

Thanks for breaking this down. So essentially the acquisition price is less than we thought. $1.2 is like employees incentive for them to not leave? 

Last edited by twintail - on 02 February 2022

Around the Network
twintail said:
the-pi-guy said:

Sony mentioned this to investors:
Bungie is a private company, the majority of whose shares are owned by its employees. So the payment of the consideration is structured to incentivize the shareholders and other creative talent to continue working at Bungie after the acquisition closes. Approximately one-third of the $3.6 billion consideration for acquisition consists primarily of deferred payment to employee shareholders, conditional upon their continued employment and other retention incentives.

These amounts will be paid over the course of several years after the acquisition closes, and will be recorded as expenses for accounting purposes. We expect about two-thirds of these deferred payments and other retention incentives to be expensed in the first two years after the acquisition closes.

So ~$2.4 billion for the actual buyout, $1.2 billion largely goes to employees over several years.  

Thanks for breaking this down. So essentially the acquisition price is less than we thought. $1.2 is like employees incentive for them to not leave? 

Effectively the up front cost was much lower than we thought. 

An article was posted about the breakdown:

https://www.tweaktown.com/news/84365/sony-offers-bungie-employees-1-2-billion-retention-incentive-plan/index.html

Last edited by the-pi-guy - on 03 February 2022

800_LilTwin said:

So now we got certain people want to convince you Bungie games will remain multiplatform when just a a few days ago they so quickly to dismiss Phil's claim of "we want to keep call of duty on playstation".....how quickly does the narrative change depending on who the company is making the big purchase.

on plus side Sony now has a "live service" cash cow game on top of the big profits from everything on PS plus and playstation as whole, should help them financially with bigger and more acquisition going forward.

Phil says he wants to keep. Playstation and Bungie ensured all Bungie games will stay multiplatform. Huge difference.

Phil can latter say that despise his best efforts it wasn't possible to keep in on Playstation and even fault Sony with any silly argument like they didn't allow GP or XBL on playstation and that was needed to bring the game they envision.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

the-pi-guy said:
twintail said:

Thanks for breaking this down. So essentially the acquisition price is less than we thought. $1.2 is like employees incentive for them to not leave? 

Effectively the up front cost was much lower than we thought. 

An article was posted about the breakdown:

https://www.tweaktown.com/news/84365/sony-offers-bungie-employees-1-2-billion-retention-incentive-plan/index.html

They still overpaid. Specially since it sounds like bungie have zero comitment to Sony. 



It takes genuine talent to see greatness in yourself despite your absence of genuine talent.

The Fury said:

"an independent subsidiary"

I think in Bungie there is one great businessman, someone who was able to buy themselves out of Microsoft, then buy the Destiny IP and now secure fook loads of money while being essentially a studio doing what they want.

On topic, I'm getting a little sad with all these purchased because all these companies are out billions and yet we, as consumers, have not got a single new game or studio from it. They could have opened and funded untold amount of new studios with budgets in the hundreds of millions to make whatever they wanted. But nope.

Same here. I would rather they put those billions in opening dozen studios.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Around the Network



eva01beserk said:

They still overpaid. Specially since it sounds like bungie have zero comitment to Sony. 

Sony still gets their revenue, technology, expertise. 

May have overpaid, but the investment makes sense. 

DonFerrari said:

Same here. I would rather they put those billions in opening dozen studios.

The issue is, a lot of their studios are having trouble hiring enough people. 



the-pi-guy said:

Sony mentioned this to investors:
Bungie is a private company, the majority of whose shares are owned by its employees. So the payment of the consideration is structured to incentivize the shareholders and other creative talent to continue working at Bungie after the acquisition closes. Approximately one-third of the $3.6 billion consideration for acquisition consists primarily of deferred payment to employee shareholders, conditional upon their continued employment and other retention incentives.

These amounts will be paid over the course of several years after the acquisition closes, and will be recorded as expenses for accounting purposes. We expect about two-thirds of these deferred payments and other retention incentives to be expensed in the first two years after the acquisition closes.

So ~$2.4 billion for the actual buyout, $1.2 billion largely goes to employees over several years.  

And it is quite possible that a good portion of the 3.6 is or will be used to increase headcount, number of teams or other investments to reach the dev ambition.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

the-pi-guy said:
eva01beserk said:

They still overpaid. Specially since it sounds like bungie have zero comitment to Sony. 

Sony still gets their revenue, technology, expertise. 

May have overpaid, but the investment makes sense. 

DonFerrari said:

Same here. I would rather they put those billions in opening dozen studios.

The issue is, a lot of their studios are having trouble hiring enough people. 

True, but well they could very much open studios in South America, Africa, Oceania, Asia, etc where there is less studios and still likely good techs available even more when nutured by the seniors of other studios. That way the diversity would increase as well.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Seems likely that Sony will leverage Bungie for Spartacus. 

Access all of Destiny's content, all their other live service content.