Former PlayStation boss Jack Tretton desires to amass game studios too

Screenshot through PlayStation YouTube

Acquisitions have all the time been part of the online game enterprise, however they’re reaching a fever pitch without delay. Microsoft is about to amass Activision Blizzard for almost $70 billion, whereas Tencent has scooped up a lot of game studios over the previous yr and alter. Now, former PlayStation boss Jack Tretton is coming into the game with a brand new firm, PowerUp.

IGN spoke with Tretton about his new firm and its intentions. PowerUp is a SPAC, a particular goal acquisition firm. While most acquisitions are used to completely soak up firms — like how Microsoft owns Bethesda below the Xbox banner —SPACs work in another way. They as an alternative merge with an organization to take them public as a mixed drive. “We want to have more of a mentorship role,” Tretton explains. “Maybe we take a board seat, but we’re not interested in joining the management team or taking the management team over.”

This makes SPACs like PowerUp particularly engaging for indie studios, who usually battle to lift cash from buyers whereas retaining independence. Tretton is taking a look at larger prizes too: he desires firms with a valuation between $1-2 billion. For comparability, his former employer Sony is seeking to purchase Bungie for $3.6 billion.

Tretton is basically in search of a “new Activision,” particularly if (seemingly, when) the Xbox merger completes. “If Activision becomes part of Microsoft or Zynga becomes part of Take-Two, that creates room for a new Zynga or a new Activision to pop up,” he explains. “Maybe somebody who is a fraction of the size of Activision or Zynga becomes the next Activision or Zynga, and those guys are going to pull up smaller companies with them.” It’s a sound technique, and one which sounds good for triple-A and indie studios alike.