(reg. req.): The favorite game among ex-CEOs in media these days: join private equity firms in media and entertainment, what else? Seems like the activity in the VC and M&A market in this space of ours is heating up..
John Riccitiello, CEO of Electronic Arts, the world’s largest maker of video game, has resigned, and plans to start a private equity business. He said he planned to join Roger McNamee, a VC investor who helped found Integral Capital Partners and Silver Lake Partners.
The new private equity firm, which will be based in Menlo Park, Calif., will focus on entertainment and media.
WSJ (sub. req.): The new fund is likely to be in the $1 billion range and to close before the end of the year, according to WSJ.
The combination of Riccitiello, and McNamee, is a sign of the growing influence of technology in media and entertainment, according to WSJ. The Internet and a host of new technologies is forcing new alliances, consolidation and shaking up existing conglomerates. Such pressures helped trigger Comcast hostile bid for Disney and have prompted speculation that such ill-fated marriages as Time Warner and America Online might eventually come apart. Similar deal opportunities would seem to beckon with media companies, where a number of conglomerates have been struggling to find a winning formula for dissimilar businesses, such as electronic hardware and media content.
Related:
– Former IBS CEO Joins JEGI Capital
– Christopher Dixon Joins Investment Firm
Of course, if you want all the lowdown on the deal economy in the digital media sector, you can check out my latest report, “The Digital Media Deals Report Q1, 2004“
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