Maxis Now Under EA's Wing

Electronic Arts announced Monday that its acquisition of Maxis, Inc. is now complete, following a Friday vote by Maxis' shareholders in favor of the transaction. Maxis, best known for its Sim City products, will become a wholly-owned subsidiary of Electronic Arts. The transaction is valued at approximately US$125 million, and Maxis shares ceased trading on the NASDAQ exchange Friday, July 25.

Maxis cofounders Will Wright and Jeff Braun will stay on in development roles, Wright as the vice president at Maxis, and Braun as the vice president at EA in studio development.

Maxis President and CEO Sam Poole will leave the company to pursue new opportunities. Fred Gerson will remain as vice president and CFO of the Maxis studio during the transition period as the companies combine their two financial operations.

Larry Probst, Electronic Arts' Chairman and CEO, said of Maxis, "Its premier title, SimCity, is one of the industry's most valuable franchises. We believe EA's worldwide sales and distribution organization can significantly expand the market for the Sim family of products."

Sim software products, however, have usually been notoriously slow in the making and painstakingly detailed. Whether Maxis will still be allowed to work as long and meticulously on new products or whether EA will enforce tighter production deadlines will be an interesting development to watch.