U2 Singer Investing in Video Games Through Private Equity Partners

0

Video game developer Pandemic Studios and online home site Homestore.com Inc. are the beneficiaries of hefty investments from private equity firm Elevation LLC, which counts U2’s Bono as one of its partners.


Elevation’s $300 million investment that merges L.A.-based Pandemic Studios with Canada-based BioWare Corp. creates one of the biggest independent video game developers in the country.


“Typically an independent like us would have to sell to a publisher or to a giant media company,” said Joshua Resnick, Pandemic’s president and co-founder. “We’re still an independent developer now we just have scale and money.”


Pandemic specializes in action-adventure games, while BioWare does more role-playing titles and has made investments in technology and online distribution. The founders of each company will remain in their executive positions, with Greg Richardson, executive in residence at Elevation, overseeing the joint company.


Elevation also has invested $100 million in Homestore.com, giving it two seats on the board of the Westlake Village-based real estate media company. Homestore said it will use the funds for acquisitions and growth.


The Menlo Park-based private equity firm launched this year with $1.9 billion to focus on media and entertainment. Its partners include John Riccitiello, former Electronic Arts Inc. chief operating officer, and Fred Anderson, former Apple Computer Inc. chief financial officer. Bono, lead singer of U2, is reputed to be a gamer.



Carolina on my Mind


Valencia-based 3D Systems Inc., which makes three-dimensional imaging technology, will be moving to Rock Hill, S.C. next year, taking at least 145 high-paying jobs with it.


Chief Executive Abe Reichental cited the need to “meet our growth and expansion requirements within a business-friendly environment,” and “improving employee recruitment costs and retention.” According to papers filed in York County, South Carolina, the jobs are expected to pay an average of $80,000 per year.


Both county and state governments of South Carolina offered several tax breaks.



Zero Voice


Woodland Hills-based United Online Inc., known for its low-priced NetZero dial-up Internet service, has jumped into the Internet voice market.


Looking to do to the Voip market what it did for online access, NetZero Voice wants to undercut competitors that include Vonage Inc. and eBay-owned Skype. It’s taking aim at Vonage, in particular, undercutting the New Jersey company’s basic plan by 40 percent.


NetZero’s unlimited calling plan costs $14.95 per month, offering unlimited computer-to-phone service within the U.S., Canada and Puerto Rico. International calls run 2 cents per minute, depending on the country. It also includes voicemail. Vonage’s unlimited plan costs $24.99 per month.


NetZero Voice works with dial-up or broadband, and does not require the purchase of an adapter unit, according to United Online Chief Executive Mark Goldston.


The service is software that’s downloadable to the user’s computer; a microphone or a headset does the trick.


United Online has been struggling of late as dial-up customers are migrating to cheaper high-speed DSL. The company has been casting around for new businesses, including a 2004 purchase of Classmates.com, a social networking site, for $100 million. It has also branched into Internet advertising and sweepstakes.



*Staff Reporter Hilary Potkewitz can be reached at (323) 549-5225 ext. 226 or by e-mail at

[email protected]

.

No posts to display