If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Digital Illusions shareholders reject EA buyout

Battlefield dev may not become part of the EA after all.

Electronic Arts' planned acquisition of Swedish developer Digital Illusions CE has hit a major obstacle, with shareholders representing 28 per cent of the firm's stock rejecting the proposed deal.

Last month the developer's board of directors recommended to shareholders that they should accept EA's offer for the company, which valued each share in Digital Illusions at 61 SEK (6.78 Euro at current conversion rates).

However, two groups of shareholders have announced their opposition to the deal, and between them they represent around 28 per cent of the firm's stock - enough to prevent the acquisition from happening, according to Swedish financial news site di.se, which explains that 90 per cent of shares must vote in favour of the deal for it to be passed.

Electronic Arts, which publishes the company's Battlefield titles and owns the Battlefield brand, currently holds around 19 per cent of Digital Illusions stock, but wishes to make the studio into part of its European studios group, which also includes recent acquisition Criterion.

The shareholders who oppose the deal believe that the developer's performance and future prospects are strong enough to make remaining independent into a more attractive option, in particular given the planned launch of Battlefield 2 on the PC and Battlefield: Modern Combat on current and next-gen consoles next year.

The two companies have less than a fortnight to convince the recalcitrant shareholders to vote in favour of the deal - the deadline for successful closure has been set as December 27th, 2004.

Will you support Eurogamer?

We want to make Eurogamer better, and that means better for our readers - not for algorithms. You can help! Become a supporter of Eurogamer and you can view the site completely ad-free, as well as gaining exclusive access to articles, podcasts and conversations that will bring you closer to the team, the stories, and the games we all love. Subscriptions start at £3.99 / $4.99 per month.

Tagged With

About the Author

GamesIndustry International avatar

GamesIndustry International

Contributor

GamesIndustry International is the world's leading games industry website, incorporating GamesIndustry.biz and IndustryGamers.com.

Comments

More News

Latest Articles

Supporters Only

Eurogamer.net logo

Buy things with globes on them

And other lovely Eurogamer merch in our official store!

Eurogamer.net Merch