Microsoft Buys another Start-Up

Microsoft Corp. agreed to acquire a videogame start-up co-founded and partly owned by Don Mattrick, the executive who runs Microsoft's videogame business.

The Redmond, Wash., company said the purchase of BigPark Inc., a Vancouver-based company that is staffed by veterans from Electronic Arts Inc., will give Microsoft control of a new game that BigPark is developing exclusively for the company's Xbox 360 game console. Financial terms of the deal weren't disclosed.

The deal is complicated by the role of Mr. Mattrick, who leads Microsoft's videogame efforts as senior vice president of the company's interactive-entertainment business. He is also chairman and co-founder of BigPark and remains a minority shareholder in the company.

David Dennis, a Microsoft spokesman, said Mr. Mattrick wasn't involved in the discussions to acquire BigPark and that the impetus to do the deal came from other Microsoft executives, including Phil Spencer, general manager of Microsoft game studios, and Robbie Bach, the president of Microsoft's entertainment-and-devices division.

"The team was blown away by the creativity and talent of folks at the studio," Mr. Dennis said. "We think the game they're working on is going to be a hit."

Mr. Mattrick co-founded BigPark several years ago after leaving Electronic Arts. Microsoft said Mr. Mattrick disclosed his investment in BigPark to the company before they hired him to run Microsoft's videogame business two years ago. His position as chairman of BigPark was approved by the company pursuant to Microsoft's standard of business conduct, Microsoft said in a statement.

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