Following the Sony acquisition of Bungie, the tech giant will spend $1 billion to retain the services of Bungie employees.
As reported by VGC, a Q3 2021 earnings report explained that a third of the $3.6 billion used to acquire Bungie, will be spent on staff. This means that $1.2 billion will be used as bonuses to existing employees. However, they will only be rewarded with bonuses, as long as they don’t leave.
The report states: “Approximately one-third of the $3.6 billion consideration for the acquisition consists primarily of deferred payments to employee shareholders, conditional upon their continued employment, and other retention incentives.
“These amounts will be paid over the course of several years after the acquisition closes and will be recorded as expenses for accounting purposes.”
That’s one hell of a bonus!
Because Bungie is not a public company and the majority of shares are owned by its employees. This likely explains why the reward incentive can be so generous. The employee bonus is “to incentivise the shareholders and other creative talent to continue working at Bungie after the acquisition closes.”
In related Bungie news following the acquisition, Sony has stated future titles will not be PlayStation exclusives. Furthermore, Sony has teased us to expect acquisitions in the near future.
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Featured Image Credit: Bungie