And now the circle is complete. Warner Bros. announced yesterday that they’ve acquired the largest privately held games developer in North America, Turbine. This successful acquisition now puts all of the Lord of The Rings based titles under Warner’s roof.
Turbine, developers of some of the most frequented MMO’s on the internet including Lord of The Rings Online and the (semi-recent) free-to-play revival of their popular Dungeons and Dragons Online: Eberron Unlimited, was founded in 1994, and has raised over $46 million in funding since 1998. Their initial release, Asheron’s Call was published by Microsoft in 1999. Turbine later re-acquired the publishing rights to this title.
While the terms of the deal were not disclosed, one Boston Globe report hints at the purchase price in the $160 million range, based on a “source close to the negotiation.” And while this number seems lofty, when one considers what Warner Brothers just added to their stables, it might be the bargain of the year. Warner Brothers has been slowly but surely ramping up their presence in the video games market over the past several years, acquiring one studio after another. With the Turbine acquisition, Warner Bros. now have access not only to Turbine’s development staff, but their tested and proven free-to-play business model. And don’t forget about Turbine’s deep index of experience when it comes to direct-to-consumer relationships via their well developed social networking platform.
“Turbine is recognized globally for its industry-leading technology, groundbreaking graphics and its unique ability to create and operate massive and persistent online worlds which greatly enhance players’ social gaming experiences,” said Martin Tremblay, president, Warner Bros. Interactive Entertainment. “The Lord of the Rings Online and Dungeons & Dragons Online have both been an enormous success for Turbine and we look forward to working with their talented development team to continue creating award-winning online games.”
From Turbine’s side, CEO Jim Crowley comments, “This acquisition is very exciting because it allows us to expand globally while continuing to focus on creating spectacular online games that our loyal fans and players have come to expect.”
And while Warner Brothers have an investment past with Turbine, it’s fair to say that they’ve had their eye on Turbine for quite a while now. Not only to complete the IP collection of J.R.R. Tolken products, but also as a way to jump into the free-to-play market, and thus capitalizing on the plethora of virtual goods monetization potential. Turbine was great before the acquisition – let’s see what new cash and a much wider reach can bring.
Congrats Turbine! We expect nothing but good things.




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