Fantasy Flight Games to Merge into the Asmodee Group

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**reds8n**

http://www.fantasyflightgames.com/edge_news.asp?eidn=5212

Fantasy Flight Games is proud to announce an upcoming merger with the Asmodee Group™! Please read below for a press release and a short Q&A on the subject of the merger.

Asmodee Contact:
CICOMMUNICATION, Marion Felix
felix@cicommunication.com
(33) 1 47 23 90 48

Fantasy Flight Games Contact:
Stephen Horvath, SVP of Marketing and Communications
Ã¢â‚¬Â¨shorvath@fantasyflightgames.com

FANTASY FLIGHT GAMES® TO MERGE INTO ASMODEE GROUP™

Paris, France; Roseville MN, November 17th, 2014. Today, Asmodee – a leading international publisher and distributor – and Fantasy Flight Games – a worldwide recognized hobby games publisher – proudly announced the pending merger of the two companies. The terms of the deal were not disclosed.

The Asmodee Group of game companies will gain access to Fantasy Flight Games’ strong sales, operational and marketing infrastructure in North America, as well as Fantasy Flight Games’ almost-20 years of expertise in game development and multi-language game manufacturing.

Fantasy Flight Games will benefit from Asmodee’s impressive distribution and marketing reach in Europe, greatly improving its product placement and organized play initiatives across the continent.

“I am delighted to welcome Christian and his team to the Asmodee Group,” said Stéphane Carville, CEO of Asmodee Group. “Fantasy Flight Games is a highly reputed publisher within the gaming community. It has demonstrated its ability to create great games and to establish fantastic relationships within the hobby games market and large entertainment companies. Together, we will continue to bring unique, innovative and high-quality games to gamers worldwide.”

“Fantasy Flight Games has enjoyed tremendous growth over the last 10 years,” said Christian T. Petersen, CEO and founder of Fantasy Flight Games. “By joining forces with Asmodee, we’ll be able to continue that growth, expand our international marketing capabilities, and create additional career opportunities for our terrific staff. Most importantly, we can do this while staying true to our vision of creating great products for the global hobby games market.”

Fantasy Flight Games will continue to operate out of its Roseville, MN headquarters, where its hardworking creative teams will keep creating those ambitious and narrative hobby games experiences for which Fantasy Flight Games has become known. Christian T. Petersen will continue as the CEO of Fantasy Flight Games while also becoming a significant shareholder of the combined entity. No staffing changes are anticipated.

Asmodee and Fantasy Flight Games Merger Q&A

A few questions related to the Asmodee and Fantasy Flight Games (“FFG”) merger have been anticipated below.

How will FFG’s and Asmodee’s product lines be affected?

FFG’s new and existing product lines will continue to be developed by FFG and sold under the FFG logo. FFG will stay a fully independent publisher in the Asmodee Group, and intends to keep creating the best games possible. A few of FFG’s products, whose identity may be deemed a better fit under a different Asmodee Group brand, may transition within the group.

Similarly, Asmodee’s existing and new products will continue to be developed by Asmodee’s creative staff and/or affiliate studios, and published under the Asmodee, or the independent studios’, logo. Those Asmodee games deemed a great fit for FFG may transition to FFG’s catalog.

The Asmodee Group has close business ties with a number of important board game publishers, such as Repos, Matagot, Ystari and others. How will the merger impact those relationships?

The union gives Asmodee and its partners access to FFG’s strong logistical and operational presence in North America, as well as access to FFG’s proprietary development tools and manufacturing infrastructure. Beyond those advantages, the identity, product development, marketing (such as website and convention presence) and sales representation of Asmodee’s close publishing partners will be unaffected.

FFG has many important intellectual property licenses. How will these be affected, and will other Asmodee partners and affiliates be able to take advantage of those licenses?

FFG expects to retain all of its licensing relationships, and will work with both Asmodee and its licensors to extend licensing potential to those parts of the Asmodee Group that makes sense for the overall product strategy and the individual license.

How will North American hobby market retailers and distributors be affected by this merger?

There are no immediate plans to change any of FFG’s or Asmodee’s hobby market retailer or distributor relationships in North America.

Most game retailers outside the U.S.A purchase FFG’s product from international distributors, many of whom translate and publish FFG’s product in their local languages. How will these distributors work with the combined entity?

For the foreseeable future, it is anticipated that current and upcoming FFG products will continue to be localized and sold by FFG’s existing international partners. Asmodee intends to work with those same distributors to broaden product availability, marketing presence, and organized play support where possible.

When should international players expect to see improvements to FFG’s organized play programs?

While incremental progress will happen sooner, players should expect that it will take more than a year for all intended improvements to be implemented.

About Fantasy Flight Games and the Asmodee Group

Fantasy Flight Games is a leading hobby games market publisher in the board, card, roleplaying, and miniature game categories. Fantasy Flight Games’ best-known titles include games based on licenses such as Battlestar Galactica, The Lord of the Rings, Sid Meier’s Civilization, and Star Wars, as well as proprietary titles such as Arkham Horror and Descent: Journeys in the Dark. Fantasy Flight Games’ principal executive offices are located at 1995 County Road B-2 West, St. Paul, MN 55113, United States of America.

Asmodee Group is a leading international games publisher and distributor with operations located in Europe, the United States, and China. Asmodee’s best known titles, either published or distributed on behalf of key publishing partners, include Ticket to Ride, Splendor, 7 Wonders, Dixit, Takenoko, Abyss, Timeline, Dobble, Jungle Speed, and Werewolves of Millers Hollow. In some European countries, Asmodee distributes also trading card games such as Pokemon, Magic, Yu-Gi-Oh!. Asmodee’s head office is located at 18 rue Jacqueline Auriol, 78041 Guyancourt France.

**BrookM**

So, if all goes well us mainlanders may finally get their stuff in a timely fashion for a change?

**judgedoug**

This is crazy. FFG went from a 30 million dollar company to being part of a much, much larger company. Asmodee is HUGE. They just absorbed Days of Wonder, too (http://www.forbes.com/sites/davidewalt/2014/08/25/days-of-wonder-merging-with-asmodee/)

**warboss**

The Asmodee Group has close business ties with a number of important board game publishers, such as Repos, Matagot, Ystari and others. How will the merger impact those relationships?

Granted I'm not up to date with euro style board games (or board games in general) but I've never heard of any of those publishers. What does Asmodee actually do? Do they just distribute or do they also create in partnership with those companies? What games have they actually helped create?

**Sinful Hero**

So is this something along the lines of expanding FFG's presence in Europe, and Asmodee expanding in the USA?

**H.B.M.C.**

Ok...

**warboss**

No freelancer email prior to the public announcement then I take it?

**Absolutionis**

H.B.M.C. wrote:
Ok...

Damn your cryptic reaction. I'm curious what your opinion is on this situation considering your affiliation with FFG.

**Lorien**

I was wishing for some time now that FFG would buyout GW ... well unfortunatly they were always to small to go that way. Maybe now they might have the money/size to go there

.

**Platuan4th**

Lorien wrote:
I was wishing for some time now that FFG would buyout GW ... well unfortunatly they were always to small to go that way. Maybe now they might have the money/size to go there .

You're assuming Asmodee want GW. Even if FFG does, if they merge into the group, it won't be their decision to make.

**OrlandotheTechnicoloured**

Well they've done what they've done, rolled the dice to become a bigger player

so FFG will now be dancing to somebody else's tune, at least to some extent

short term it shouldn't be a problem,

longer term who knows Christian T Petersen is going to be “a significant shareholder” in the merged company, but unless you are a majority shareholder you may not be listened to if your view does not match that of the majority

**reds8n**

http://www.escapistmagazine.com/news/view/138631-Fantasy-Flight-Games-Acquired-by-European-Asmodee-in-Board-Game-Merger

Asmodee is a large french publisher of board games owned by the Eurazeo investment group, which manages some $6 billion in assets. The terms of the acquisition are not being disclosed.

Whilst one assumes that Asmodee are, presumably, a somewhat small slice of the portfolio Eurazeo manage does mean they have a fair old bit of clout behind them.

**Mathieu Raymond**

The French are at it again. :p
They'll never release another version of Dark Heresy because they will keep redoing them before sending them to print, in perpetuity.

**Wonderwolf**

Lorien wrote:
I was wishing for some time now that FFG would buyout GW ... well unfortunatly they were always to small to go that way. Maybe now they might have the money/size to go there .

While I still doubt that GW would be attractive to any of them.

FFG is basically just an office with a few people and a few computers in it. All Asmodee was buying/merging with was contracts to juicy licenses/esstablished distributers, a known company brand name and a few board game brands/ips FFG managed to put on the map on their own.

Do the same thing with GW, and suddenly you've got to manage a global retail chain, logistic centres, factories, all the staff working in all of these around the world, etc.., etc.,

**JudgeShamgar**

OrlandotheTechnicoloured wrote:
Well they've done what they've done, rolled the dice to become a bigger player

so FFG will now be dancing to somebody else's tune, at least to some extent

short term it shouldn't be a problem,

longer term who knows Christian T Petersen is going to be “a significant shareholder” in the merged company, but unless you are a majority shareholder you may not be listened to if your view does not match that of the majority

From the wording of the announcement it seems like FFG is retaining all the options to run the company as they see fit. The wording in the announcement sounded like both companies wanted to use the others marketing and distribution infrastructure. FFG even refers it to a "merger", not a buyout, or takeover.

**agnosto**

Wonderwolf wrote:

While I still doubt that GW would be attractive to any of them.

FFG is basically just an office with a few people and a few computers in it. All Asmodee was buying/merging with was contracts to juicy licenses/esstablished distributers, a known company brand name and a few board game brands/ips FFG managed to put on the map on their own.

Do the same thing with GW, and suddenly you've got to manage a global retail chain, logistic centres, factories, all the staff working in all of these around the world, etc.., etc.,

Somehow I think a company that manages $6 Billion in assets would be able to just about pull-off running a business that's just worth $100 million or so....

**Wonderwolf**

agnosto wrote:

Somehow I think a company that manages $6 Billion in assets would be able to just about pull-off running a business that's just worth $100 million or so....

Being able to manage and wanting to buy a global retail chain are two pair of shoes.

And 6 Billions in assets?

Holy?

In 2012, Asmodee was worth a bit more than 140 Million EUR all said and done.

Eurazeo has entered exclusive talks to acquire French party games publisher and distributor Asmodée from Montefiore Investment for an enterprise value of €143m. Subject to agreement from competition authorities, Eurazeo will supply approximately €102m in the transaction, while Asmodée's management and founders will reinvest €13m. Montefiore bought Asmodée in a secondary buyout from Naxicap Partners in January 2008. The firm acquired a 60% stake in the company as part of a deal with management worth €40-50m.

That is some mighty expansion there.

With the 2012 numbers of Asmodee (143 Mio. EUR or around 178 Mio USD) and the 30 Mio. USD estimate for FFG, the combined company would still only be about 3/4 of the much reduced current GW (178 Mio. GBP or around 270 Mio. USD at its current 30% down from last year).

**NTRabbit**

The acquisition of White Wolf by CCP was described in the official announcements as a merger too.

It's just friendlier language.

**agnosto**

Wonderwolf wrote:
agnosto wrote:

Somehow I think a company that manages $6 Billion in assets would be able to just about pull-off running a business that's just worth $100 million or so....

Being able to manage and wanting to buy a global retail chain are two pair of shoes.

And 6 Billions in assets?

Holy?

In 2012, Asmodee was worth a bit more than 140 Million EUR all said and done.

Eurazeo has entered exclusive talks to acquire French party games publisher and distributor Asmodée from Montefiore Investment for an enterprise value of €143m. Subject to agreement from competition authorities, Eurazeo will supply approximately €102m in the transaction, while Asmodée's management and founders will reinvest €13m. Montefiore bought Asmodée in a secondary buyout from Naxicap Partners in January 2008. The firm acquired a 60% stake in the company as part of a deal with management worth €40-50m.

That is some mighty expansion there.

With the 2012 numbers of Asmodee (143 Mio. EUR or around 178 Mio USD) and the 30 Mio. USD estimate for FFG, the combined company would still only be about 3/4 of the much reduced current GW (178 Mio. GBP or around 270 Mio. USD at its current 30% down from last year).

The point here being; when you're already a multi-national conglomerate, you absorb companies and they become another department in your governance. Even $270million isn't undigestible by a company that manages that much already, you hire people that can manage the resources if you don't already have people on staff that can.

None of this really matters as I don't see majority shareholder Kirby selling out, he enjoys his little fiefdom too much.

**H.B.M.C.**

warboss wrote:
No freelancer email prior to the public announcement then I take it?

We're not employee's, so there's no real reason to tell us anything unless it directly impacted any ongoing projects.

Speaking of which...

Absolutionis wrote:
Damn your cryptic reaction. I'm curious what your opinion is on this situation considering your affiliation with FFG.

... well from what I've been told it doesn't affect us.

And before anyone asks, other than what I've put in this post I know as much about this as the rest of you: Just what was in the press release.

**Sining**

Wow...I'm not even sure if this is good news. Will this in anyway affect whatever FFG has planned to produce?

**Peregrine**

Sining wrote:
Wow...I'm not even sure if this is good news. Will this in anyway affect whatever FFG has planned to produce?

Why would it? FFG has been a successful business until now, so why would the new owner want to step in and make major changes that might risk that success? I see no reason to interpret this as anything more than what the press release says: a merger that optimizes the sales side of the business, especially in regions where each company didn't have as much presence yet.

**silent25**

agnosto wrote:

Somehow I think a company that manages $6 Billion in assets would be able to just about pull-off running a business that's just worth $100 million or so....

You're confusing Asmodee with it's parent investing company Eurazeo. Asmodee is still a small board game company. It is liking saying Avalon Hill is a $4 billion company when it's only a small part of Hasbro.

This is bad news. Yes, Eurazeo will be hands off for now, but as soon as there is a downturn or disappointing quarter, they will start fiddling and bring in their own "experts".

**notprop**

A merger could be grounds for dissolving a licence, if GW wanted to be in business with Asmodee then they would be....

GW is a publicly traded company, if Asmodee wanted to own GW they could do at anytime. The aquisition of FFG doesn't in anyway enhance or hinder then if that was an aim....

This is about a big French outfit focusing on the states. Seen such things before albeit in other industries. I would imagine this is all about Star Wars. Vive la Rebellione?

**ahzek**

I was excited that ffg products might be better stocked in the UK, but esdevium are under the same umbrella so I doubt we'll see much change

**treslibras**

A medium-large sized, very succesful European board game producer/distributor of pricey deluxe game with money but limited international assets (e.g. US network, big licencing contracts) and brand recognition buys a medium-undersized, very succesful US board game producer/distributor of pricy deluxe games with high international assets, high brand recognition but some problems to plan and meet demand.

Whats not to like?

Keeping the local partners (for the time being) is a sign that Asmodee is not aiming to sack and plunder FFG, although I see no reason why they should keep parallel production/distribution channels in the long run.
Maybe the Heidelbaer will also get an offer he cannot refuse? Germany is the biggest (non video-) gaming market in Europe, after all.

**Aesop the God Awful**

JudgeShamgar wrote:
From the wording of the announcement it seems like FFG is retaining all the options to run the company as they see fit. The wording in the announcement sounded like both companies wanted to use the others marketing and distribution infrastructure. FFG even refers it to a "merger", not a buyout, or takeover.

Yes, going only by the article this does indeed seem to be the case.

But then, I don't know much about Asmodee and their history of treating partners, but if this does benefit FFG and its costumers it can only be a good thing.

**xaarex**

Interesting: boardgamegeek article

In the above article note this line from Asmodee rep: "For the foreseeable future, it is anticipated that current and upcoming FFG products will continue to be localized and sold by FFG's existing international partners. Asmodee intends to work with those same distributors to broaden product availability, marketing presence, and organized play support where possible."

To me this suggests both companies benefit substantially from the arrangement. Also Eurazeo's intent (as is printed on their web-site) is to make Asmodee a major global player in their field and not only in distributing and publishing but also on in-house game development. Asmodee just bought major key people in the design industry in this merger and the earlier one they bought "Days of Wonder". FFG gets streamlined and effective publishing and distribution channels in Europe - an area FFG has stumbled on for years as witnessed by European players wanting to buy products that seem to be "out of stock" all the time. Besides the software development branch of FFG probably provides Asmodee an interesting field to develop and learn from as Asmodee's games have pathetically little or no online presence.

**agnosto**

silent25 wrote:
agnosto wrote:

Somehow I think a company that manages $6 Billion in assets would be able to just about pull-off running a business that's just worth $100 million or so....

You're confusing Asmodee with it's parent investing company Eurazeo. Asmodee is still a small board game company. It is liking saying Avalon Hill is a $4 billion company when it's only a small part of Hasbro.

This is bad news. Yes, Eurazeo will be hands off for now, but as soon as there is a downturn or disappointing quarter, they will start fiddling and bring in their own "experts".

No, I get that but you have to have a clear understanding of a the attractiveness of a middle-size global retail chain with weakening financials. You also have to take into account that parent companies generally listen to their subsidiaries so if Eurazeo puts together a good presentation on how acquiring GW would benefit the conglomerate's bottom line....

It's all pie in the sky because until Kirby goes on to his reward (the bahamas?) he's going to continue to exert a stranglehold on GW.

**Nightwolf829**

After watching the White-Wolf / CCP "merger" some time ago I am extremely skeptical of the whole affair. I do not trust Asmodee to be hands off.