Electronic Arts, a world leader in interactive entertainment software, has
created a new division to publish games for the Web and to operate a series
of new on-line gaming sites. The new division has been formed to create
content for America Online, the world's leading Internet service company.
Electronic Arts' new on-line gaming division comes on the heels of their
acquisition of Charlottesville, Virginia-based Kesmai Corporation, a
developer of multiplayer on-line entertainment previously owned by News
Corp. The new EA.com-subsidiary provides games to various other online companies including Excite,
EarthLink, GolfWeb, Fox World and Fujitsu. By acquiring Kesmai, EA gains
popular game titles like AIR WARRIOR, the first graphic multiplayer on-line
game; ALIENS ON-LINE; STARSHIP TROOPERS; and MULTIPLAYER BATTLETECH. The
deal also grants EA non-exclusive distribution rights to Fox Interactive
on-line games. Kesmai had previously been the major provider of games for
AOL's Games Channel. Upon shareholder approval, EA plans to create a new
common stock -- Electronic Arts B Common Stock -- to track the business
potential of this new on-line venture. Once created, America Online, Inc.
will purchase 10% of the new stock. Electronic Arts President and Chief
Operating Officer John Riccitiello will oversee the new Internet business.
The on-line division will be based in Redwood City, CA at the Electronic
Arts' facilities.