Big electronics concern buys LV's Westwood Studios

Westwood Studios Inc., one of Southern Nevada's most successful high-tech enterprises, was sold Monday to one of the top electronic games distributors in the world.

Electronic Arts, of San Mateo, Calif., acquired the assets of Virgin Interactive Entertainment from Spelling Entertainment Group Inc. for $122.5 million in cash. Westwood is a subsidiary of Virgin Interactive.

The transaction is subject to regulatory approvals and is expected to be completed in September.

The acquisition doesn't include all of Spelling's interest in Virgin Interactive, but it does include the entire Westwood operation. It's housed in a 37,000-square-foot office in the Las Vegas Technology Center at 2400 N. Tenaya Way.

Pat Becker, director of corporate communications for Electronic Arts, said there are no plans to change Westwood's operation, which now has about 125 employees.

"There's nothing broken there, nothing that needs to be fixed," Becker said. "They do outstanding work and the best thing for us to do is to let them continue.

"Westwood is one of the crown jewels in our industry," Becker said. "We love them to death and they're not moving, if that's what you're asking."

Becker said Electronic Arts operates nine other studios worldwide and they will share creative ideas.

Electronic Arts, which is moving its headquarters with an expansion in Redwood City, Calif., next month, had net revenues of $908.9 million for its recently completed fiscal year, 35 percent greater than the previous year. The company had $72.6 million in net income, 41 percent more than the previous year's level.

Headed by Chairman and Chief Executive Officer Lawrence Probst III, the company released 71 products last year.

Also included in the transaction announced Monday is Virgin Interactive's Irvine, Calif. facility with 40 project developers.

Founded in 1985 by Louis Castle and Brett Sperry, Westwood Studios has won awards for its development of computer and video games. Among Westwood's titles are the "Command & Conquer" franchise, which has been one of the most successful PC CD-ROM games ever, "The Lion King," "Dune II" and "Lands of Lore."

In 1992, Westwood was acquired by Spelling, which is headed by Hollywood producer Aaron Spelling.

Spelling, which produces television shows and has created "Beverly Hills 90210" and "Melrose Place," and Viacom, its parent company, indicated they plan to focus on their core television operations and will use their share of the proceeds to pay for production costs and to retire corporate debt.

For the 1998 television season, Spelling will have 12 series in production. Through its combined libraries, the company controls about 9,000 hours of programming domestically and about 10,000 hours for international distribution.

Virgin Interactive's European operations and its sales and distribution business were not included in Monday's announced transaction but the assets to be sold represent the bulk of the company. Spelling Entertainment Group owns about 91 percent of Virgin Interactive. Viacom owns about 80 percent of Spelling's common stock.

Both companies are publicly traded on the American Stock Exchange.

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