Chapter 178: Activision Deal (bonus)

What Ethan really wanted was the legendary studio behind Activision. 

That studio was none other than Raven Software, a talented development team that would one day become one of the most important studios behind the Call of Duty franchise. 2

But at this point, the company's founders, the Raffel brothers, were still far removed from the gaming industry. One was working as an art teacher, while the other worked in printing. They could hardly have been more disconnected from the world of video games. 

Regardless, acquiring Activision first was undoubtedly the right move. 

And Activision's headquarters was, naturally, in California, a place overflowing with talent and opportunity. 

..... 

California, Santa Monica, Activision. 

Bruce Davis, who had only recently taken over as CEO, paid no attention to David as he stormed into the office demanding an explanation. He simply tapped his fingers lightly against the desk several times before looking up at the man standing before him. 

David Crane was one of Activision's four founders and the last surviving member of the group, yet Bruce showed him not the slightest bit of respect for it. 

To Bruce, video games were nothing more than another type of merchandise, so treating them as works of art would only waste Activision's resources. 

"Do I really need to remind you, David? If it weren't for my reforms, Activision would already be bankrupt. I honestly don't understand what you're complaining about." 

"That's because you're exploiting the developers, Bruce! Infocom can't keep churning out games at an even faster pace. You're turning them into products on an assembly line!" 

David's face flushed red. He had finally reached his limit. 

"You're right, David. Video games are products on an assembly line. That's exactly why I was able to turn Activision around after sixteen consecutive quarters of losses." 1

Bruce didn't even bother to look him in the eye. 

In his mind, game developers were no different than the workers on an assembly line. The only difference was that they sat in front of computers and looked more glamorous while doing the same thing. 

To a corporation, profits were the only thing that mattered. 3

"If you want someone to blame, go blame the former CEO, Jim. I was against the Infocom acquisition from the beginning." 

"You!" 

David's anger lodged in his throat, too bitter to swallow and too fierce to release. His face flushed red as he stood there, breathing heavily, able only to point accusingly at Bruce while his fury raged inside him. 

"Unbelievable! Fine, Bruce. If that's truly what you think, then so be it. You'll have my resignation letter on your desk." 

David slammed his hand against the desk, turned around, and stormed out of the office without looking back. 

A group of developers stood silently nearby, watching and waiting for the outcome of the tense confrontation. 

The moment they saw the barely restrained fury on David's face and the redness that still lingered across his cheeks, they needed no explanation. They already knew how the conversation had ended. 

They had failed to reach an agreement. 

"David, if you're leaving, then I'm quitting too!" 

"Me too!" 

"Let's start our own company! Screw Activision! Screw Bruce! We'll do it ourselves!" 

"Exactly! We can become a third-party developer for Nintendo. Or go to Sierra. Maybe Borderland. Hell, we could even go to GAMENOVA!" 

The developers, who had been holding in their grievances for a long time, finally let their emotions show. 

Just then, a senior executive from the administration department walked past with a gloomy expression. He paid no attention to the group of employees who seemed to stage a rebellion every few days. The envelope clutched tightly in his hand was far more important. 

It was a lawsuit filed by the patent troll Magnavox. Compared to the developers' little rebellion, this was the issue that truly had upper management worried. He cast a cold glance at the developers before walking straight into the office. 

"Bruce, the lawsuit from Magnavox is here again. This time, they're demanding $6.6 million in damages." 

"Damn it! This lawsuit is going to drive our stock price even lower." 

Bruce slammed his hand against the desk. 

If Activision could maintain its current momentum, they might have been able to turn things around within another month. Once the quarterly financial report was released and investors regained confidence in the company, the stock price could have recovered. 

But the lawsuit from Magnavox had destroyed that possibility. Now, Bruce could only hope that Activision could somehow come up with another $6.6 million to deal with the claim. 

"Knock, knock, knock." 

Bruce exchanged a quick glance with the executive before slipping the letter into a drawer. He straightened himself, cleared his throat, and said, "Come in." 

The door opened. 

"Someone is here to see you." 

"Is it Magnavox? Tell them they'll get our response in court. They don't need to come here and make things worse." 

"No. It's the founder and CEO of GAMENOVA, Ethan Hayes." 

Bruce froze. For a moment, he simply stared, as though he had misheard. 

"GAMENOVA?" he asked, his voice suddenly quieter. 

Then his expression changed completely. Surprise gave way to excitement as he realized who had come to see him. 

..... 

"Of course. The offer is perfectly reasonable. I'll call a board meeting immediately." 

With a twenty-percent premium on the table, Bruce had no reason to hesitate. 

Activision was no longer the profitable company it had once been. Years of mounting problems had turned it into a liability, one that was becoming increasingly difficult to manage. 

The situation with Magnavox only made matters worse. If Activision continued down its current path, bankruptcy protection might soon become unavoidable. But even that was not the greatest threat. The real danger was allowing the lawsuit to consume what little capital the company had left. 

GAMENOVA was offering them a way out. If Ethan was willing to take Activision off their hands, Bruce had no intention of turning him down. 

The board meeting was brief, and the acquisition offer was approved almost immediately. 

GAMENOVA had recently completed an acquisition worth nearly $100 million with Micron. Compared with that deal, acquiring a small company on the verge of bankruptcy required very little effort from Ethan. 

He simply took a seat in the executive office and waited for the formal handover to begin. There was no need for a lengthy tender process. Both sides moved quickly, and the equity transfer agreement was signed shortly afterward. 

"Thank you, Ethan. I hope Activision thrives under your leadership." 

Bruce gave a cautious smile as he stood before Ethan, clearly hoping to make a good impression. He was hoping to secure a position for himself and remain with the company even after the acquisition. 

Working under GAMENOVA meant he wouldn't have to worry about his future ever again. Compared with that, the acquisition price was hardly worth worrying about. 

Ethan looked at him for a moment. 

"Hmm? What are you still doing here? You can leave now." 

"Uh?" 

"The acquisition is over, isn't it? Why are you still standing here?" 

"Ethan, Activision's management is currently in a terrible state. I think the first thing you should do is reorganize the company so that it can operate properly." 

Seeing that Ethan clearly hadn't understood the hint, Bruce had no choice but to make the suggestion himself. 

"Ah, you make a good point." 

Only then did Ethan nod in agreement. He waved to Sam. 

"Sam, bring David in." 

Then he looked back at Bruce. "Thank you for the suggestion, Bruce. I'm sure you have other things to take care of, so I wish you the best." 

"...?" 

When David pushed open the door and entered, he happened to come face to face with Bruce, who was walking out of the office with a dark expression. The two looked at each other and stopped simultaneously, neither of them said a word. 

After a long while, David suddenly broke into a wide grin and burst out laughing. He gave Bruce a brief pat on the shoulder before entering the office to meet one of the most influential figures in the gaming industry. 2

"Oh, David, perfect timing." 

Ethan stood and gestured toward the desk. 

"I've been extremely busy these past few days. Activision needs someone to take charge of the company and oversee the restructuring. I'd like you to handle it." 

David stared at him in surprise. Before he could respond, Ethan guided him toward the chair and gestured for him to take a seat. 

"Oh, by the way, where are the other members? I haven't seen them yet." 

"I'll call Larry and the others right now!" 

David grabbed Ethan's hand and shook it enthusiastically. 

'GAMENOVA is here! Justice has finally arrived!' 

'At last, the wait was over! The hero was here to save the day!' 

How could they possibly make great games while working under a parasite like Bruce? 

"By the way, Ethan, do you have any plans for Infocom? It's still under Activision, isn't it?" 

David suddenly remembered the studio the previous CEO had spent a fortune acquiring. Under Bruce's management, it had nearly been driven into the ground. 

"Infocom?" Ethan paused. 

"Oh, that studio that makes text-adventure games. They're actually very good." 

His eyes lit up, as this was an unexpected bonus. Unfortunately, GAMENOVA didn't really have a use for Infocom at the moment. 

"Hm... I know." 

Ethan walked over to the telephone and casually dialed a number. 

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