ZeniMax Media Receives $300 Million Investment

Brother None

Brother None

This ghoul has seen it all
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Always interesting to see what happens to the owner of the "independent" developing house Bethesda. ZeniMax, having recently opened ZeniMax Online, has got a cash injection x1000.<blockquote> ZeniMax Media Receives $300 Million Investment from Providence Equity Partners

Rockville, MD, October 25, 2007 – ZeniMax Media Inc. today announced the closing of a $300 million investment by Providence Equity Partners Inc. for convertible preferred stock of the Company. The proceeds of the investment will be used to fund future growth, increase game development and publishing, facilitate acquisitions, and finance massively multiplayer online games (MMOGs).

ZeniMax Media was founded in 1999 by Robert A. Altman, its Chairman and CEO, and through wholly owned subsidiaries creates and publishes original interactive entertainment content for gaming consoles (including the Xbox 360™ video game and entertainment system from Microsoft, the PLAYSTATION®3 computer entertainment system, and the Nintendo DS and Wii), the PC, handheld/wireless devices, and online gaming. Last year its wholly owned subsidiary, Bethesda Softworks, released The Elder Scrolls IV: Oblivion® which was voted Best Game of 2006. Bethesda’s upcoming title, Fallout® 3, has already been featured on the cover of more than 20 magazines worldwide and has won accolades as one of most anticipated games for 2008.

"We believe that Providence will be an ideal partner for us as we build our businesses worldwide in the years ahead. Providence shares our strategic vision for the Company and is excited by the opportunity to help us move into a position of leadership in this industry,” said Mr. Altman.

“We are pleased to partner with one of the best managed companies in the videogame industry,” said Michael Dominguez, a Managing Director of Providence. “ZeniMax Media has an outstanding series of proven interactive entertainment content and a burgeoning position in the rapidly growing global video game market. We look forward to working with Robert to build value at ZeniMax Media over the long-term.”

Mr. Dominguez will join the Company’s Board of Directors, which is currently led by Mr. Altman and includes ZeniMax Media President Ernest Del, Leslie Moonves (President and CEO of CBS), Harry E. Sloan (Chairman and CEO of Metro-Goldwyn-Mayer Inc.), Robert S. Trump (President of Trump Management), noted film and television producer Jerry Bruckheimer, and Hall of Famer Cal Ripken, Jr.

Banc of America Securities, LLC acted as exclusive placement agent for ZeniMax Media Inc. The Company was advised by DLA Piper.

Goldman Sachs and Weil Gotshal Manges advised Providence Equity Partners.

About ZeniMax Media Inc.
ZeniMax Media is a unique media organization which has brought together a team of world-class game developers, artists and designers, programmers, producers, and leading executives and talent from traditional media. ZeniMax Media creates and publishes original interactive entertainment content for consoles, the PC, and handheld/wireless devices. ZeniMax Media divisions include Bethesda Softworks, Vir2l Studios, ZeniMax Europe Ltd., and ZeniMax Online Studios. For more information on ZeniMax Media, visit www.zenimax.com.

About Providence Equity Partners
Providence is the leading global private equity firm specializing in equity investments in media, entertainment, communications and information companies around the world. The principals of Providence manage funds with approximately $21 billion in equity commitments and have invested in more than 100 companies operating in over 20 countries since the firm’s inception in 1989. Providence is headquartered in Providence, RI (USA) and has offices in New York, London, Hong Kong and New Delhi. Please visit www.provequity.com for more information.</blockquote>You'd think they don't need a cash injection, with the money flow generation by hundreds of thousands of people buying horse armor online, or the constant issues and re-issues of Oblivion and its expansions and GotY editions and the PS3 expansion.

More importantly: "acquisitions"? Now who could ZeniMax be looking to acquisition? Interplay?
 
Brother None said:
More importantly: "acquisitions"? Now who could ZeniMax be looking to acquisition? Interplay?
Click to expand...

No way! That would nullify the comedy of Interplay's bad license deal.
 
Jerry Bruckheimer ?

Oh well i cant wait to roam the wasteland in my Nike's listening to my iPipBoy and get a taste of that Gamma Bud Beer ;)
oh and i bet there will be a huge atomic blast at the beggining !

excuse my rude jokes .. thats an intresting read about Zenimax.
 
In other news:

I predict that in 2-4 years the gobling eating monster known as EA will buy Providence Equity Partner....just to make sure that all games in the future are owned and controlled by EA... :o :shock:

Scary thought, isn't it. It could happen, though. A year ago, not a soul would have believed you if you have foretold that by january 2008, EA would own Bioware :crazy: And Bioware did very well on its own, I think, with the company selling millions and millions of copies of their games, even re-issues of old games like the Forgotten Realms pack and NWN1 Diamond Editions and such things.

As for Bethesda Softworks and Zenimax Media making its on their own, I think, you forget that the 300 million US dollars probably will be going into the development of the MMO they're making. Buying Interplay could certainly be an viable option, I think. Or maybe they're going to buy EA :? 8-)
 
Huge investment firms are, bottom line, only interested in "wheeling and dealing" to make money as fast as possible. Thats not good for game developers that depend on "artistry, commitment, passion, and enough time to make it right" to produce their products.

I foresee upheavals in the next 5 years as the investors try to parlay that $300M into $800M (as did the holding company which bought Bioware).

Probably not a good thing for games or gamers in general.
 
Definitely an interesting read. It really makes you wonder about where ZeniMax is trying to go. They've been getting a lot of intellectual property lately, and increasing the size of Bethesda itself. Perhaps they're looking to become a bigger player in the publishing realm.
 
Honestly, it's not too much of a surprise. Video games are becoming HUGE and businesses that otherwise would have nothing to do with them are coming out of the woodwork to buy stuff up like crazy. Regardless, though, the end result will be fewer places to go with interesting or different ideas for games.

Just think of it like the consolidation of the Hollywood movie studios. It's resulted in more crappy product as the number of studios shrunk, the budgets got bigger, and the executives were less likely to bother with anything that wasn't a "proven formula." Hell, you have to practically immolate yourself to get anything higher than a PG-13 rating these days.

Oh, and what happened to movie studios puts the to bed the lie that "if one really huge succes that's semi-like what a niche market wants is made, other companies will make stuff for the niche market." Quite the opposite is usually true- If a big and bland product is a success financially, the execs will see it as a proven formula and stick with it.

The niche market will be ignored as the "creators" (term used liberally here) of the product continue to push copycat products onto an increasingly uninformed public. And since there are fewer alternatives, or even no alternatives, often the public will continue to consume these things in the hope that they will be different.

Sorry to derail the thread a bit, just something I've had on my mind for a while.
 
I've said it before and I'll say it again. This is, without doubt the highest risk venture Beth could undertake. An already crowded market, with top tier industry names who are already working on the next-gen of already proven branded models.

I think Beth will lose. big.

But then again, I expect Fallout 3 to undersell Oblivion, so take what I say with a pinch of pepper.
 
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