Electronic Arts has reportedly made overtures to Valve, the popular publisher and owner of the Steam distribution platform, for a $1 billion buyout. Founder Gabe Newell said that he would rather Valve “disintegrate” than sell out to EA. Valve is a privately owned corporation.
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While $1 billion might seem like a lot for a publisher that only releases games every few years, Valve’s Steam service is highly successful. In fact, EA’s offer greatly undervalues the company. According to Forbes, “Even the most conservative estimates put Valve’s enterprise value at more than $3 billion, and since Newell owns more than 50% of the company, that means he’s worth at least $1.5 billion.”
