The End of Sierra as We Knew It, Part 1: The Acquisition
In 1996, Sierra On-Line merged with CUC International, raising concerns among gamers. CUC, led by Walter Forbes, focused on offline services, marking a significant shift for Sierra's business direction.
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In early 1996, Sierra On-Line was thriving, having achieved record revenues and profits, largely due to the success of its game Phantasmagoria. However, on February 20, the company announced a merger with CUC International, a little-known technology-driven consumer services company, valued at approximately $1.06 billion. This unexpected move raised questions among gamers about CUC's identity and operations. CUC, led by CEO Walter Forbes, had a vision for e-commerce that predated the internet but had primarily focused on offline shopping clubs and membership services. Forbes, who joined Sierra's board in 1991, had influenced Sierra's expansion through various acquisitions in the early 1990s. The merger discussions began informally, with Forbes probing Sierra's co-founder Roberta Williams about a potential sale. While she initially dismissed the idea, her husband Ken Williams later showed interest, leading to the merger proposal. The acquisition marked a significant shift for Sierra, as it transitioned from a successful game publisher to part of a larger corporate entity with a different business focus.
- Sierra On-Line was successful before its merger with CUC International in 1996.
- CUC International was primarily known for offline shopping clubs and membership services.
- Walter Forbes, CEO of CUC, had a vision for e-commerce but had not fully realized it before the merger.
- The merger raised concerns among gamers about the future direction of Sierra.
- The acquisition was influenced by informal discussions between Forbes and Sierra's leadership.
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- Many commenters express nostalgia for Sierra's classic adventure games and their impact on gaming culture.
- There is criticism of the business decisions made during the merger with CUC International, particularly regarding the loss of creative direction.
- Some users highlight the importance of storytelling and character development in games, contrasting it with corporate interests.
- Several commenters reference external articles and authors who have explored Sierra's history and the broader context of gaming.
- There is a sense of hope that Sierra's legacy could be revived under new ownership, particularly with Microsoft.
17 commentsI can also recommend his other site, Analog Antiquarian[1] where he writes more about the larger history. His Magellan series that's going on now is really amazing, makes you feel like you're really experiencing the epic voyage through South America and South East Asia.
[0] https://www.filfre.net/2018/06/doing-windows-part-1-ms-dos-a...
And then:
> “Have you and Ken ever thought about selling Sierra?” <Forbes> asked her out of the blue one day in the lobby of the Paris hotel.
> “No,” Roberta answered shortly. “We’re not interested.”
> “But if you ever were, what sort of price would you be looking at?”
> “A lot,” Roberta replied, then walked away as quickly as decorum allowed.
Pretty clear which of the two was the better business person.
EY later settled in court at 300 million but never admitted any wrongdoing. So much for the reputation of the "big four" which at the time was still known as "big five".
0: https://www.vice.com/en/article/inside-story-sierra-online-d...
It's such a contrast then to read (what I find profoundly distasteful) quotes like this from the other side of the company. Ken Williams: "I read books about business executives who owned yachts and jets, and who hung out with beautiful models in fancy mansions. I knew that was my future and I couldn’t wait to claim it.".
It's a tragedy Ken Williams managed to overrule nearly everyone familiar with Sierra (including his wife) opposed to the acquisition by CUC.
I came away kind of sickened by the "corporatization" of art (and I think game development is a kind of art when it's at its best). Budgets, deadlines... Gross.
Wild window in time though that was.
Still works on windows, still fun.
Am I dreaming?
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