Innovative Independent Videogame Finance Transaction Finalized
FOR IMMEDIATE RELEASE
Los Angeles, CA (March 26, 2008) -- Flagship Studios, the San Francisco-based creator of both Hellgate: London™ and Mythos™ for PC, and Comerica Bank, a Texas-based regional bank, today announced that they have closed an innovative finance transaction to support Flagship’s continuing development of AAA and online game franchises.
Using an independent film financing model as its basis, Comerica Bank has created a multi-million dollar facility backed by the sale and distribution rights to Flagship’s game franchise“Hellgate: London”.
"By following a model similar to independent film financing, we are able to directly finance ongoing content for our online games without relying upon a publisher’s investment," said Steve Goldstein, Director of Business Development and General Counsel, Flagship Studios. "As the PC game business makes the transition from the boxed retail model to the online model, alternative financing will become a cornerstone of expanding the industry."
"We are pleased that Comerica Bank could build on our expertise in financing films to help meet the financial needs of Flagship Studios," said Jeff Colvin, Senior Vice President with Comerica Bank, from its Entertainment Group offices in Century City.
Jeff Colvin and Todd Steiner structured the transaction on behalf of Comerica. Joshua Grode and Sam Kozhaya of Liner Yankelevitz Sunshine&Regenstreif, LLP led the legal team on behalf of Comerica. Andrew Katz of Mitchell Silberberg&Knupp, LLP represented Flagship Studios in the transaction.
About Flagship Studios
Flagship Studios is a creator of innovative entertainment software, designing games that focus on ease of play, replayability, and fun. The studio was formed in 2003 by former executives and developers from Blizzard North? and represents the creators of the worldwide, best-selling Diablo? franchise. With members that are renowned within the gaming industry, Flagship Studios and its Flagship Seattle division embody a team that has worked together for over a decade and have numerous #1-selling games and multiple Game of the Year awards to their credit. Website: www.flagshipstudios.com.
About Comerica Bank
Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a Fortune 500 financial services company based in Dallas, and strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth&Institutional Management. Comerica focuses on relationships and helping businesses and people be successful. Comerica Incorporated is one of the 20 largest U.S. banking companies, with $62 billion in assets at Dec. 31, 2007. Website: www.comerica.com.
Liner Yankelevitz Sunshine&Regenstreif, LLP is a full-service law firm with offices in Los Angeles and San Francisco, practicing in the areas of intellectual property litigation, business and entertainment litigation, products liability, real estate, business and financial crimes defense, mergers and acquisitions, bankruptcy and creditors' rights, tax and estate planning, and financial services litigation. The firm was recently named one of the best places to work in Los Angeles by the Los Angeles Business Journal. Website: www.linerlaw.com.
About Mitchell Silberberg&Knupp
Mitchell Silberberg&Knupp LLP, with offices in Los Angeles, New York and Washington D.C., is celebrating its 100th Anniversary in 2008 as a full-service law firm. Throughout its history it has provided cutting edge litigation and transactional legal services to the entertainment industry, including in intellectual property, financing, mergers and acquisitions, and securities matters. MSK’s Entertainment and its Labor and Employment attorneys have been recognized nationally for their achievements. The firm is also pleased to have been recognized as one of the best mid-sized companies to work for in California. Website: www.msk.com.
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Barry Holtzclaw, 408-556-5111
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Tricia Gray, (415) 489-1400
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