Electronic Arts to Buy Virgin Software Units

Electronic Arts Inc., the world’s largest computer game maker, said it will acquire Virgin Interactive Entertainment Ltd.’s software development groups in Irvine and Las Vegas for $122.5 million in cash. The deal with Los Angeles-based Spelling Entertainment Group Inc., which owns about 91% of Virgin Interactive, casts a shadow over the fate of Virgin’s remaining operations. Spelling has been in talks with Electronic Arts for nearly a year, sources said. But San Mateo-based Electronic Arts was interested in only part of the Virgin package: Westwood Studios Inc., the 125-employee Nevada-based subsidiary known for its successful “Command and Conquer” series, and Virgin’s development team of 40 employees in Irvine. Spelling officials would not comment on what will happen to the remainder of Virgin Interactive.