San Francisco, Aug 18: Electronic Arts Inc, the world's largest video game developer, said it had agreed to buy Westwood Studios, the developer of the "Command & Conquer" video game, in a deal valued at $122.5 million in cash, from the Spelling Entertainment Group and Viacom Inc.Spelling Entertainment Group Inc said that it and Viacom Inc are selling all the stock in their computer and video game studio, Westwood Studios, and other assets, as Spelling continues to focus on its core television operations.
Westwood Studios is a subsidiary of Virgin Interactive Entertainment Limited. Virgin's European operations and its sales and distribution business are not included in the deal.
Spelling Entertainment, owns approximately 91 per cent of Virgin Interactive. Viacom owns about 80 per cent of Spelling's common stock.
Subject to customary closing conditions, Electronic Arts said the deal is expected to close at the end of September.
Las Vegas-based Westwood Studios, which was founded in 1985 by Brett Sperry and Louis Castle, is best-known for its big selling PC game, "Command & Conquer" and "Land of the Lore."
Electronic Arts chairman and CEO Larry Probst said that the acquisition should help propel Electronic Arts to becoming the number one developer of video games for the PC.
Westwood Studios currently has a 5 per cent to 6 per cent share of the PC gaming market. "We want to build share on the PC platform," Probst said in a telephone interview. "That will put us to the No. 1 position on the PC platform."
Electronic Arts, based in San Mateo, Calif., is the world's biggest video game developer.
Westwood will remain based in Las Vegas, where about 150 people are working on multiple projects, including one game that was previewed at the E3 gaming show, called SuperBikes, a motorcycle racing video game.
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