Electronic Arts Inc. (NASDAQ:ERTS) today announced the acquisition of J2MSoft Inc. (J2M), a Korean developer of PC online games. J2M develops free-to-play online games which are monetized through micro-transactions and advertising. Online games created and wholly owned by J2M include RayCity, TAAN, and Debut, and other properties to be announced.
“This is a significant step in EA’s strategic plan for developing and publishing online games in Asia,” said Jon Niermann, President, EA Asia. “J2M is an experienced team of developers and we can’t wait to have them start creating online games based on new properties and powerful EA franchises.”
“Korean developers have created a unique style of online games that is growing in popularity all over Asia,” said J2M Founder and CEO KyungMin Bang. “We are excited that EA is aligning with our vision for online game. Joining EA presents our team with an opportunity to significantly expand our based with players throughout Asia and around the world as well as to be at the forefront of online gaming.”
EA has launched popular online games in Asia including EA SPORTS™ FIFA Online and NBA STREET Online. Other EA titles in development for online play in Asia include Warhammer®: Age of Reckoning®, Need For Speed and Battlefield Heroes. EA SPORTS FIFA Online debuted in Korea in 2006 and is currently among Korea’s top-ten online games. In the months ahead, EA expects to announce other popular franchises in development for online play in Asia.
The acquisition closed on December 2, 2008. Terms of the agreement were not released. While valuations are not yet complete, EA does not expect the acquisition to have a material impact on its financial results in fiscal 2009.
EA SPORTS and Need for Speed are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. Battlefield Heroes is a trademark of EA Digital Illusions CE AB. Warhammer and Age of Reckoning are registered trademarks of Games Workshop Ltd. FIFA and NBA are the property of their respective owners and used with permission. All other trademarks are the property of their respective owners.
Safe Harbor For Forward-Looking Statements
Some statements set forth in this release, including those regarding EA's pending acquisition of J2M and the expected impact of the acquisition on EA's strategic and operational plans and financial results, contain forward-looking statements that are subject to change. Statements including words such as "anticipate," "believe," "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause results to differ materially from the expectations expressed in these forward-looking statements include the following: J2M’s ability to expand in Asia; the effect of the announcement of the acquisition on EA's and J2M’s strategic relationships, operating results and business generally, including the ability to retain key employees; general economic conditions; and other factors described in EA's SEC filings (including EA's Annual Report on Form 10-K for the year ended March 31, 2008 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2008). If any of these risks or uncertainties materialize, the acquisition may not be consummated or may not be consummated on the anticipated terms, the potential benefits of the acquisition may not be realized, EA's operating results and financial performance could suffer, and actual results could differ materially from the expectations described in these forward-looking statements. EA assumes no obligation to update these forward-looking statements.