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Author Topic:   Who Owns FIRAXIS

Sparky posted 06-10-99 07:10 PM ET
Who really is in charge of FIRAXIS? I know that it's a tangled web of ownership, but I'ld like to know what company I'm talking to.
What I've gleaned so far:
1997(?) -- Sid and Brian split from Microprose and formed Firaxis.
1998 -- Electronics giant Electronic Arts buys Maxis, creators of Sim City.
1998 -- Electronic Arts then buys Microprose.
1999 -- Firaxis ships Alpha Centauri with EA fliers and advertisements.
Did EA buy Firaxis, too? Is Civ III the result of EA aquiring all the factions in the gaming industry to join together for wold peace? Or do they want to TAKE OVER THE WORLD?!!!
I dunno.
Mongoose posted 06-10-99 07:16 PM ET
Fairly certain it was Hasbro that bought Microprose. This is the first I've heard of an EA-Microprose link. Maybe you should double - check?
jimmytrick posted 06-10-99 09:02 PM ET
I will spill the beans, Sparky, but if you tell I'll have to kill you.
Bill Gates owns all the game companies, under various blind corporations etc.
jimmytrick
Darkstar posted 06-11-99 12:21 AM ET
EA owns a part of Firaxis.
Hasbro owns Microprose.
Firaxis negotiated rights to make Civ3.
Is that all cleared up now?
-Darkstar
Sparky posted 06-11-99 12:24 PM ET
That's right, I forgot that Hasbro owns Microprose. But didn't Hudson Soft in the early 90's. I heard that the parent company entirely changed its name to Microprose.
Apocalypse posted 06-14-99 12:11 PM ET
HS mergered or something.
Picker posted 06-14-99 12:23 PM ET
I own Firaxis, come on what are you guys thinking.
Imran Siddiqui posted 06-14-99 02:58 PM ET
EA doesn't own part of Firaxis! EA is Firaxis's publisher! Firaxis OWNS Firaxis! They can seperate from EA at any time (like in Civ 3!)
Darkstar posted 06-14-99 03:12 PM ET
So Imran, is Firaxis, wholy and completely, privately held by Firaxians (Sid, Brian, Jeff and the gang)? Is is a private partnership? Or just a private owned corporation? I thought that EA had a part of them from something said about financial matters a while back.
-Darkstar
Sparky posted 06-19-99 02:02 PM ET
Dunno. Didn't Hudsonsoft become Microprose shortly before Microprose was bought by EA?
DanS posted 06-19-99 04:58 PM ET
Microprose has had a tangled ownership web and has changed hands every couple of years. Most recently Spectrum Holobyte/Microprose, was purchased by Hasbro through a tender offer for outstanding shares--in other words, it may not have been very friendly. Spectrum Holobyte/Microprose had been owned by FMR Corp. (~13.5%), SWICO Anstalt (6.5%), and Massachusetts Financial Services Company (~11%). It appears that there was some unsavory stuff going on because they did a 5-1 reverse stock split. Reverse stock splits are common in stock swindles and poorly managed companies. My hunch is that this group nearly killed Microprose.
Hasbro, after the merger, combined Spectrum Holobyte/Microprose into Microprose (Spectrum Holobyte) and folded it into its Hasbro Interactive division. As an aside, Hasbro also recently has purchased Atari's library of games.
Firaxis is not formally associated with Microprose, as far as I can tell, but since both companies are based in Hunt Valley, Maryland, and there is a strong history between the two companies, collaboration between them is understandable.
Electronic Arts (EA) was Firaxis' publisher for SMAC. EA is an independent software publisher (Console + PC). As of last year, significant investors included Montag & Calwell, Inc. of Atlanta, Georgia (~12%) and Putnam Investment Management Company, i.e., a mutual fund (11%). Origin is a subsidiary of EA. That's why you are on an Origin site talking about SMAC.
IIRC, Firaxis was financed by an angel who apparently has deep pockets and a strong commitment to the company. As I understand it, Jeff Briggs created a business plan and shopped it around for about 6 mos. to 1 year. From what I can see, Firaxis has been given wide latitude and freedom to go about their business. It is my assumption that the the three founders of the company, Sid Meier, Jeff Briggs, and Brian Reynolds, still hold a significant stake in the company.
I wouldn't be surprised to find out that this is the angel investor's first foray into the computer game business.
Please correct me if you have better info on the Firaxis/Microprose/Hasbro story. Also, I will add more info if I can find it.
The Great Sephiroth posted 06-19-99 07:04 PM ET
+1 for my post count! bwahaha
Lodi posted 06-19-99 11:04 PM ET
Hell the Dreat Baalzelbuth owns Firaxis!! How many o you guys even know what he is anyway?
GP posted 06-20-99 05:03 PM ET
That was some cool infop DanS. where did you get all that. e-mail a copy of your reply if you don't mind. You sound like a business school type.
Darkstar posted 06-21-99 02:24 AM ET
Thanks DanS. That is a lot of info!
-Darkstar
DanS posted 06-21-99 11:43 AM ET
Actually, Darkstar was correct when he said that EA owns part of Firaxis. I have much more information at my disposal now, since I am at work. I will further synthesize the available information when time permits.
Zoetrope posted 06-25-99 12:27 PM ET
GP: What do "agbizdigest" and "Pesticides Analyst" suggest about DanS?
"Hey! Keep off my garden, you agbizzing son of a ..."
GP posted 06-26-99 01:30 PM ET
Well if you combine an evil chemist with an evil finance type guy you are over the normal person's evil sensitivity threshold. Somewhere near a Dr. Evil/Mike Myers type character.
DanS posted 06-28-99 08:59 PM ET
This is my one thousand and first post in these forums and probably my last. Enjoy and if any of you have better information than I do, or would like to expand any portion of the information I am providing, by all means post it.
Installment #2 -- Who Owns Firaxis
Firaxis was established in late May/early June of 1996 when Sid Meier, Jeff Briggs, and Brian Reynolds left Microprose. Sid was still on contract with Microprose for its release of Magic: the Gathering, so he couldn't devote all of his time toward the company until Fall 1996. Sid's divided time did not stop Firaxis from moving quickly to set up the company, however. Firaxis immediately began discussions with several (possibly up to a half-dozen, including Microprose) publishing companies for rights to publish its games.
Firaxis negotiated with these suitors during the month of August and eventually chose EA to publish at least its first two games. Several of my sources conflict on whether the deal was for two or four titles, so I cut the baby in half. Perhaps Firaxis had a contract for two games and options for two more. In any event, Firaxis agreed to develop games solely for EA, while the contract was in force. It appears that Firaxis is on its own now, as is evident by the recent Firaxis/Hasbro deal to develop Civ 3.
The deal consisted of: (1) EA made a minority equity investment in Firaxis of less than $5 million for an unknown portion of the company; (2) Firaxis had control over the creative; and (3) EA had control over the packaging and marketing of the product. I guess that Firaxis got a 60-40 split of the gross wholesale take, ~$25-30/box. Origin, a subsidiary of EA that has a small office (~11 people) in Hunt Valley and is headquartered in Austin, IIRC, was to handle the publishing of SMAC.
Word problem --> If SMAC sells 400,000 copies, they will be taking in very roughly $6.6 million. Not bad, but this is over the life of the product, let's say 1.50 years, decaying at a rate of 50%/quarter. If we assume that Firaxis' payroll is ~20 people at an average of $85,000 salary (fat cat executives ) and 50% overhead for each employee (posh offices and those nice Thinkpads ), then they would burn cash at a rate of about $2.55 million/year. If Firaxis has a 1.5 year development cycle for a product, then they are making ~25% yearly on their money for the game, SMAC.
If things go according to original plan, Firaxis is now developing two games at once. We know one is Civ3. The other one is a mystery to me, although there have been rumblings about the third game of the Sweep of Time series. They might even slip in a real-time battle game based on the Gettysburg! game engine.
At any rate, don't expect Firaxis to grow much beyond its current size. I count ~21 employees, and the ruling triumverate of Firaxis has expressed its wish to stay small, at around 20 or so employees. This is Firaxis, full steam ahead.
Sources --> securities filings with the SEC, The Baltimore Sun, The Houston Chronicle, The Wall Street Journal, and The Baltimore Business Journal.
Btw, Brian Reynolds is from Huntsville, Ala. Darkstar has good company.
OldWarrior_42 posted 06-29-99 03:02 AM ET
Thank you DanS... that was indeed truly informative. And sorry to hear about your forum burnout. Good luck and I might be right behind you soon You never know.
Darkstar posted 06-29-99 12:47 PM ET
Thanks again DanS.
If you are leaving us, well, you will be missed.
-Darkstar
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Author	Topic: Who Owns FIRAXIS
Sparky	posted 06-10-99 07:10 PM ET Who really is in charge of FIRAXIS? I know that it's a tangled web of ownership, but I'ld like to know what company I'm talking to. What I've gleaned so far: 1997(?) -- Sid and Brian split from Microprose and formed Firaxis. 1998 -- Electronics giant Electronic Arts buys Maxis, creators of Sim City. 1998 -- Electronic Arts then buys Microprose. 1999 -- Firaxis ships Alpha Centauri with EA fliers and advertisements. Did EA buy Firaxis, too? Is Civ III the result of EA aquiring all the factions in the gaming industry to join together for wold peace? Or do they want to TAKE OVER THE WORLD?!!! I dunno.
Mongoose	posted 06-10-99 07:16 PM ET Fairly certain it was Hasbro that bought Microprose. This is the first I've heard of an EA-Microprose link. Maybe you should double - check?
jimmytrick	posted 06-10-99 09:02 PM ET I will spill the beans, Sparky, but if you tell I'll have to kill you. Bill Gates owns all the game companies, under various blind corporations etc. jimmytrick
Darkstar	posted 06-11-99 12:21 AM ET EA owns a part of Firaxis. Hasbro owns Microprose. Firaxis negotiated rights to make Civ3. Is that all cleared up now? -Darkstar
Sparky	posted 06-11-99 12:24 PM ET That's right, I forgot that Hasbro owns Microprose. But didn't Hudson Soft in the early 90's. I heard that the parent company entirely changed its name to Microprose.
Apocalypse	posted 06-14-99 12:11 PM ET HS mergered or something.
Picker	posted 06-14-99 12:23 PM ET I own Firaxis, come on what are you guys thinking.
Imran Siddiqui	posted 06-14-99 02:58 PM ET EA doesn't own part of Firaxis! EA is Firaxis's publisher! Firaxis OWNS Firaxis! They can seperate from EA at any time (like in Civ 3!)
Darkstar	posted 06-14-99 03:12 PM ET So Imran, is Firaxis, wholy and completely, privately held by Firaxians (Sid, Brian, Jeff and the gang)? Is is a private partnership? Or just a private owned corporation? I thought that EA had a part of them from something said about financial matters a while back. -Darkstar
Sparky	posted 06-19-99 02:02 PM ET Dunno. Didn't Hudsonsoft become Microprose shortly before Microprose was bought by EA?
DanS	posted 06-19-99 04:58 PM ET Microprose has had a tangled ownership web and has changed hands every couple of years. Most recently Spectrum Holobyte/Microprose, was purchased by Hasbro through a tender offer for outstanding shares--in other words, it may not have been very friendly. Spectrum Holobyte/Microprose had been owned by FMR Corp. (~13.5%), SWICO Anstalt (6.5%), and Massachusetts Financial Services Company (~11%). It appears that there was some unsavory stuff going on because they did a 5-1 reverse stock split. Reverse stock splits are common in stock swindles and poorly managed companies. My hunch is that this group nearly killed Microprose. Hasbro, after the merger, combined Spectrum Holobyte/Microprose into Microprose (Spectrum Holobyte) and folded it into its Hasbro Interactive division. As an aside, Hasbro also recently has purchased Atari's library of games. Firaxis is not formally associated with Microprose, as far as I can tell, but since both companies are based in Hunt Valley, Maryland, and there is a strong history between the two companies, collaboration between them is understandable. Electronic Arts (EA) was Firaxis' publisher for SMAC. EA is an independent software publisher (Console + PC). As of last year, significant investors included Montag & Calwell, Inc. of Atlanta, Georgia (~12%) and Putnam Investment Management Company, i.e., a mutual fund (11%). Origin is a subsidiary of EA. That's why you are on an Origin site talking about SMAC. IIRC, Firaxis was financed by an angel who apparently has deep pockets and a strong commitment to the company. As I understand it, Jeff Briggs created a business plan and shopped it around for about 6 mos. to 1 year. From what I can see, Firaxis has been given wide latitude and freedom to go about their business. It is my assumption that the the three founders of the company, Sid Meier, Jeff Briggs, and Brian Reynolds, still hold a significant stake in the company. I wouldn't be surprised to find out that this is the angel investor's first foray into the computer game business. Please correct me if you have better info on the Firaxis/Microprose/Hasbro story. Also, I will add more info if I can find it.
The Great Sephiroth	posted 06-19-99 07:04 PM ET +1 for my post count! bwahaha
Lodi	posted 06-19-99 11:04 PM ET Hell the Dreat Baalzelbuth owns Firaxis!! How many o you guys even know what he is anyway?
GP	posted 06-20-99 05:03 PM ET That was some cool infop DanS. where did you get all that. e-mail a copy of your reply if you don't mind. You sound like a business school type.
Darkstar	posted 06-21-99 02:24 AM ET Thanks DanS. That is a lot of info! -Darkstar
DanS	posted 06-21-99 11:43 AM ET Actually, Darkstar was correct when he said that EA owns part of Firaxis. I have much more information at my disposal now, since I am at work. I will further synthesize the available information when time permits.
Zoetrope	posted 06-25-99 12:27 PM ET GP: What do "agbizdigest" and "Pesticides Analyst" suggest about DanS? "Hey! Keep off my garden, you agbizzing son of a ..."
GP	posted 06-26-99 01:30 PM ET Well if you combine an evil chemist with an evil finance type guy you are over the normal person's evil sensitivity threshold. Somewhere near a Dr. Evil/Mike Myers type character.
DanS	posted 06-28-99 08:59 PM ET This is my one thousand and first post in these forums and probably my last. Enjoy and if any of you have better information than I do, or would like to expand any portion of the information I am providing, by all means post it. Installment #2 -- Who Owns Firaxis Firaxis was established in late May/early June of 1996 when Sid Meier, Jeff Briggs, and Brian Reynolds left Microprose. Sid was still on contract with Microprose for its release of Magic: the Gathering, so he couldn't devote all of his time toward the company until Fall 1996. Sid's divided time did not stop Firaxis from moving quickly to set up the company, however. Firaxis immediately began discussions with several (possibly up to a half-dozen, including Microprose) publishing companies for rights to publish its games. Firaxis negotiated with these suitors during the month of August and eventually chose EA to publish at least its first two games. Several of my sources conflict on whether the deal was for two or four titles, so I cut the baby in half. Perhaps Firaxis had a contract for two games and options for two more. In any event, Firaxis agreed to develop games solely for EA, while the contract was in force. It appears that Firaxis is on its own now, as is evident by the recent Firaxis/Hasbro deal to develop Civ 3. The deal consisted of: (1) EA made a minority equity investment in Firaxis of less than $5 million for an unknown portion of the company; (2) Firaxis had control over the creative; and (3) EA had control over the packaging and marketing of the product. I guess that Firaxis got a 60-40 split of the gross wholesale take, ~$25-30/box. Origin, a subsidiary of EA that has a small office (~11 people) in Hunt Valley and is headquartered in Austin, IIRC, was to handle the publishing of SMAC. Word problem --> If SMAC sells 400,000 copies, they will be taking in very roughly $6.6 million. Not bad, but this is over the life of the product, let's say 1.50 years, decaying at a rate of 50%/quarter. If we assume that Firaxis' payroll is ~20 people at an average of $85,000 salary (fat cat executives ) and 50% overhead for each employee (posh offices and those nice Thinkpads ), then they would burn cash at a rate of about $2.55 million/year. If Firaxis has a 1.5 year development cycle for a product, then they are making ~25% yearly on their money for the game, SMAC. If things go according to original plan, Firaxis is now developing two games at once. We know one is Civ3. The other one is a mystery to me, although there have been rumblings about the third game of the Sweep of Time series. They might even slip in a real-time battle game based on the Gettysburg! game engine. At any rate, don't expect Firaxis to grow much beyond its current size. I count ~21 employees, and the ruling triumverate of Firaxis has expressed its wish to stay small, at around 20 or so employees. This is Firaxis, full steam ahead. Sources --> securities filings with the SEC, The Baltimore Sun, The Houston Chronicle, The Wall Street Journal, and The Baltimore Business Journal. Btw, Brian Reynolds is from Huntsville, Ala. Darkstar has good company.
OldWarrior_42	posted 06-29-99 03:02 AM ET Thank you DanS... that was indeed truly informative. And sorry to hear about your forum burnout. Good luck and I might be right behind you soon You never know.
Darkstar	posted 06-29-99 12:47 PM ET Thanks again DanS. If you are leaving us, well, you will be missed. -Darkstar