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Bloomberg: PEP weighing what to do w/ Zenimax (Arkane, Bethesda, id); possible sale

Which major Western publisher do you most want to buy Bethesda?


Results are only viewable after voting.
Providence Equity Partners, the private equity firm focused on technology, media and telecommunications, is exploring options for portfolio company ZeniMax Media Inc., people with knowledge of the matter said. The buyout firm has held talks with banks about what to do with its stake in the developer and distributor of video games, including a possible initial public offering or a sale, said the people, who asked not to be identified because the information is private.

The business, which would probably draw interest from other private equity firms, could be valued at as much as $2.5 billion, the people said. No final decision has been made and Providence may decide to retain the company.

ZeniMax makes video games, including Doom, Elder Scrolls and Quake, for consoles and personal computers and mobile devices. It received its initial investment from Providence in 2007. Shareholders include ProSiebenSat.1 Media SE, according to a spokesman for the German broadcaster.

The company is led by Chairman and Executive Officer Robert A. Altman. Its board includes Jerry Bruckheimer, according to ZeniMax’s website, a producer for films such as “Top Gun” and “Pirates of the Caribbean.”

A spokesman for Providence declined to comment, while a spokesman for ZeniMax didn’t respond to e-mail messages seeking comment.
http://www.bloomberg.com/news/artic...to-weigh-options-for-video-game-maker-zenimax
 

Trojan

Member
Private Equity acquisitions like this often don't end well. PEP will sell Zenimax to the highest bidder, even if it involves slicing it up into chunks and could severely damage those studios in the process.
 

Guevara

Member
Looks like Providence controls only a minority stake (25%), so I wouldn't expect anything to change too dramatically.
 

Trojan

Member
Doubt they'd sell it. Bethesda has a lot of profitable IP's right now.

What does ID software do anymore though?

Profitable, but the console market is not viewed as a growth market. They aren't having these talks because they're just curious. I'm guessing it's accurate that they actively want to get out of this market to get the best price for Zenimax because they don't see much future growth in console. The market is shrinking over time, even despite the success of the PS4.
 

StereoVsn

Member
Profitable, but the console market is not viewed as a growth market. They aren't having these talks because they're just curious. I'm guessing it's accurate that they actively want to get out of this market to get the best price for Zenimax because they don't see much future growth in console. The market is shrinking over time, even despite the success of the PS4.
Yes, Bethesda IP is shrinking and this is why Skyrim and Fallout 4 didn't sell well on Console and PC....... Wait, what?
 

Nirolak

Mrgrgr
There are quite a few cash rich publishers who might be interested.

Warner could go really big with them.

EA said they'd at least consider acquisitions again if there was one that wasn't junk.

Activision might want core gaming growth options.

Take-Two might need more reliable output given Rockstar's slowdown, though they'd need to get loans or do a stock transfer.

Ubisoft is explicitly looking for acquisitions, though they're historically uncomfortable with AAA heavy sci-fi/fantasy/etc and that's all ZeniMax does.
 

FelipeMGM

Member
Doubt they'd sell it. Bethesda has a lot of profitable IP's right now.

What does ID software do anymore though?

Well, they are releasing a game in 2 days.

There are quite a few cash rich publishers who might be interested.

Warner could go really big with them.


EA said they'd at least consider acquisitions again if there was one that wasn't junk.

Activision might want core gaming growth options.

Take-Two might need more reliable output given Rockstar's slowdown, though they'd need to get loans or do a stock transfer.

Ubisoft is explicitly looking for acquisitions, though they're historically uncomfortable with AAA heavy sci-fi/fantasy/etc and that's all ZeniMax does.

They would fit perfect with Warner IMO
 

orochi91

Member
I can't see many companies being able to afford that estimated price.

Microsoft should go for it; in one swoop, they'd have a great roster of IPs.
 

Matt_C

Member
Am I the only person who wants Facebook/Oculus to take over?
Welcome home John Carmack.
. Oculus could use some retail presence and aren't they self publishing some games?
 

StereoVsn

Member
I can't see many companies being able to afford that estimated price.

Microsoft should go for it; in one swoop, they'd have a great roster of IPs.
God, I hope not. Modding would be dead then considering UWP shenanigans. I also see Ubi unlikely as they are fighting against Vivendi take over attempt.
 

boltz

Member
Yes, Bethesda IP is shrinking and this is why Skyrim and Fallout 4 didn't sell well on Console and PC....... Wait, what?

Yeah but just selling well isn't what investors want to see, they want reliable YoY growth. Look at how Apple's stock has been punished recently because although they still sell crap tons of devices, it's not as much as investors want.
 
God, I hope not. Modding would be dead then considering UWP shenanigans. I also see Ubi unlikely as they are fighting against Vivendi take over attempt.

Between Warner, EA, Activision, Take-two, and Ubisoft, I actually feel you'd have the best chance at mods with a Microsoft acquisition.
 

Drkirby

Corporate Apologist
There are quite a few cash rich publishers who might be interested.

Warner could go really big with them.

EA said they'd at least consider acquisitions again if there was one that wasn't junk.

Activision might want core gaming growth options.

Take-Two might need more reliable output given Rockstar's slowdown, though they'd need to get loans or do a stock transfer.

Ubisoft is explicitly looking for acquisitions, though they're historically uncomfortable with AAA heavy sci-fi/fantasy/etc and that's all ZeniMax does.

I don't think they would sell them. I believe they will spin them off into its own proper company, have that company go public, and retain a sizable stake in it.
 

casiopao

Member
There are quite a few cash rich publishers who might be interested.

Warner could go really big with them.

EA said they'd at least consider acquisitions again if there was one that wasn't junk.

Activision might want core gaming growth options.

Take-Two might need more reliable output given Rockstar's slowdown, though they'd need to get loans or do a stock transfer.

Ubisoft is explicitly looking for acquisitions, though they're historically uncomfortable with AAA heavy sci-fi/fantasy/etc and that's all ZeniMax does.

Guess, it is time for Nintendo here lol.

Buy It.!!!
 

Hasney

Member
Wow, that poll makes me realise I wouldn't want any of them buying it. Would have been Warner until their string of PC failures made me want anyone but them. Take two, I guess?

But still, it's just 25% for now. No disaster would happen unless some other investor wanted to sell.
 

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
There are quite a few cash rich publishers who might be interested.

Warner could go really big with them.

EA said they'd at least consider acquisitions again if there was one that wasn't junk.

Activision might want core gaming growth options.

Take-Two might need more reliable output given Rockstar's slowdown, though they'd need to get loans or do a stock transfer.

Ubisoft is explicitly looking for acquisitions, though they're historically uncomfortable with AAA heavy sci-fi/fantasy/etc and that's all ZeniMax does.

Take-Two and Warner would be my pick.

Take Two through the emission of shares or treasury shares + cash on hand - consolidation will happen one way or another at this point, may as well solidify their business with another small/key player

Warner as it's been one of their best performing unit this FY and management will most likely want to solidify that business going forward.
 

CHC

Member
Fuck, all these options are bad.

I'm actually quite surprised that Zenimax is valued at "only" 2.5 billion. You would think ownership of the Elder Scrolls series and all of id's IPs would make it worth a bit more.
 

Granjinha

Member
I would bet on Warner. I would actually want them to do it, too, cause they seem one of the best publishers around that know how to handle their IP's and launch new stuff and actually have success with it.

Well, besides Zenimax. :p

They would fit really well.

EDIT: Btw, isn't Tango a part of Zenimax too? It's outside the title so i'm confused
 

Hexa

Member
I don't think any of the options have enough money to just be able to buy them outright without facing major issues. It'll probably be some other equity firm as is implied in the article.
 
The best option for a takeover is Take-Two. I would trust them to do right with Bethesda´s franchises, although it might take a longer time developing these games.
 

Welfare

Member
Microsoft to swoop in for Elder Scroll and Fallout.

Warner or Take Two would be best, I think, if they can even afford that.
 

Matt

Member
First of all, anyone talking about who should buy Zenimax is massively jumping the gun.

But having said that, count out WB, Take-Two, and MS.
 

El_Chino

Member
First of all, anyone talking about who should buy Zenimax is massively jumping the gun.

But having said that, count out WB, Take-Two, and MS.

At least Microsoft has the cash and already does advertising deals with Bethesda but why not?
 

Matt

Member
Too rich for WB and TT, and MS has no desire to spend that kinda of money on a video game acquisition.

And nobody say Minecraft, for a lot of reasons that's not the same thing.
 
Whichever publisher would shut down or botch the attempt at paid mods that bethesda might try again.

Even if that means no more mods for bethesda games ever again(if EA bought them this is what would happen) , a worthy sacrifice

@ anyone saying MS: calm down satan. The last thing we need is bethesda games being used to push UWP
 

El_Chino

Member
Too rich for WB and TT, and MS has no desire to spend that kinda of money on a video game acquisition.

And nobody say Minecraft, for a lot of reasons that's not the same thing.

As people have already stated Bethesda has profitable IPs, surely it's worth the investment.
 
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