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| Sony Acqured Bungie |
Bungie employees will be rewarded handsomely as part of Sony's $3.6 billion acquisition of the Destiny developer.
Sony stated in its Q3'21 financial report that it wants to spend a significant amount of the Bungie buyout offer on retention. Sony has stated that it is willing to spend $1.2 billion, or 1/3 of its $3.6 billion buyout offer, on a long-term incentive plan that will benefit Bungie employees who stay with the company.
The remaining $2.4 billion will be paid in a full takeover of Bungie's private shares by Sony. The bonus is supposed to keep Bungie's present workforce together after the acquisition.
Following the buyout's completion, deferred payments will be made over a number of years. The company intends to pay $792 million in deferred incentive payments over the next two years after the deal is completed.
Bungie will enjoy incredible creative freedom under Sony, allowing it to self-own, publish, and release its games across all platforms while staying independent.
- Sony will now use this conceptual model to describe, at a high level, how this transaction will be considered in terms of accounting.
- Because Bungie is a private company with the majority of its shares owned by its employees, the payment of the consideration is structured to motivate shareholders and other creative talent to continue working at Bungie after the acquisition is completed.
- Nearly one-third of the 3.6 billion US dollar acquisition consideration is made up of deferred payments to employee owners contingent on their ongoing employment and other retention incentives. These sums will be paid over a number of years following the acquisition's completion and will be reported as costs for accounting purposes.
- We believe that about two-thirds of these deferred payments and other retention incentives will be expensed in the first two years following the acquisition's completion.
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