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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Joseph J. Valenzuela who wrote (3865)	3/11/1998 5:44:00 PM
From: Don Westermeyer	Respond to of 14266

Electronic Arts Signs Exclusive WCW License First World Championship Wrestling Title From EA To Appear in Mid-1999 SAN MATEO, Calif.--(ENTERTAINMENT WIRE)--March 11, 1998-- Electronic Arts(TM) (NASDAQ:ERTS - news), the leading independent interactive entertainment software company, today announced it has signed an exclusive licensing agreement with World Championship Wrestling Inc. (WCW) for the worldwide interactive rights to develop and distribute computer and video games based on the organization's wrestlers. Electronic Arts (EA) plans to ship its first title under the five-year agreement in mid-calendar 1999. Financial terms of the deal were not released. The license gives Electronic Arts exclusive use of more the 100 WCW and New World Order (NWO) wrestlers, such as ''Hollywood'' Hulk Hogan, Kevin Nash and Scott Hall of the NWO and Sting, ''Macho Man'' Randy Savage and Lex Luger of the WCW. It also permits the use of WCW announcers and other talent. WCW stars will be motion captured in EA's British Columbia studio and artfully rendered into the game, bringing the full richness, color and action of the sport to computer and video games players. ''World Championship Wrestling is a huge spectator sport that is growing at an amazing rate,'' said Larry Probst, Electronic Arts Chairman and CEO. ''Over the past two years, WCW has established the preeminent brand in wrestling entertainment, typically garnering audiences of 32 million viewers per week. We believe that our world-class creative organization can successfully translate the passion that fans feel for the WCW into best-selling products for both video game consoles and PCs.'' World Championship Wrestling is the highest rated program on basic cable television in the U.S. In addition, WCW matches are shown in more than 50 countries worldwide through TNT network television. ''The partnering of Electronic Arts with World Championship Wrestling is an incredible opportunity,'' said Nick Lambros, executive vice president of World Championship Wrestling. ''EA and WCW are the best in their respective fields and should be able to create highly innovative and successful games for release in 1999 and beyond. We look forward to partnering with EA on this mutually beneficial relationship.''

To: Joseph J. Valenzuela who wrote (3865)	3/11/1998 5:48:00 PM
From: Sigmund	Read Replies (1) \| Respond to of 14266

One problem we might have in upcoming quarters particularly the first quarter is that the better the WCW products do the worse people will feel about the upcoming loss of these revenues. That is why I think it possible that THQI will sell their rights to the WCW license to whomever buys the rights to the product for 1999 onward. If rather than selling these rights, THQI traded them for participation beyond 1998 in the revenues from the license, that might be interesting. As a minor detail question, will there be overlap in the first half of 1999?

To: Joseph J. Valenzuela who wrote (3865)	3/11/1998 7:29:00 PM
From: tbuff	Respond to of 14266

<< But I challenge those who suggest that Farrell willingly dropped the WCW license. THQ lost it. >> ERTS was able to pay more for the license than was THQI. Farrelll probably had a certain amount he was willing to spend and did not get into a bidding war which he probably could not have won. Did ERTS spend too much? Should THQ have kept the license at any cost? Will THQ flounder in 1999 and beyond because of this?