Wall Street Keen On EA Buyout

By Spencer . September 23, 2009 . 4:10pm

image Electronic Arts stock jumped today over unsubstantiated rumors that Microsoft is looking to acquire them.

 

David Dennis, Corporate PR from Microsoft’s Interactive Entertainment division, squelched the rumor and said Microsoft has "no plans to purchase Electronic Arts." But, what if Microsoft owned EA?

Purchasing Electronic Arts would give Microsoft exclusive use of established franchises like The Sims, Need For Speed, and Madden. They would also own BioWare plus a slew of up and coming IP like Dead Space, Mirror’s Edge, and Dante’s Inferno.

 

The move would be a big one, if (with a capital I) it happens.


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  • http://myanimelist.net/profile/Kuronoa Kuronoa

    Just having Madden exclusive to one console would cause riots.

  • http://twitter.com/ECMIM ECM

    There’s literally no chance MS buys EA, for any number of reasons that I’ll leave other posters to note.

    • http://www.youtube.com/user/xxHiryuuxx Hiryuu

      Although I’d think so as well, we’re dealing with economy and monies, not people and their thoughts.

      I see it very possible in this current state of an economy to make anyone’s stock shoot through the roof.

  • TTTT

    what I don’t understand is why would the the stock go up? if Microsoft owned EA, would the 360 be able to get EAs entire game library exclusively? If so, wouldn’t that actually hurt EAs sales and therefore also make the stock go down?? perhaps it is the buyout price for EA stock holders that would be high?

    • TTTT

      oh actually EA stock would not go down because it would be Microsoft stock I guess… him, I should check wikipedia or something…

    • JeremyR

      The stock would go up, because people are buying it so as to sell it to MS, when they start the buy out. At least they would. If it was a hostile takeover, anyway.

      • TTTT

        right, that makes sense. thank you for the reply!!! :)

      • CleruTesh

        Are you certain that it would have to be a hostile takeover?
        I believe that after any given merger, the stockholders will be issued stock of the parent company at some sort of exchange rate…
        Obviously not 1:1, but since Microsoft stock is generally considered to be a high value stock, this may be seen as a way to acquire Microsoft stock on the cheap.

  • CleruTesh

    I apologize in advance that some readers may find this comment antagonistic.
    But honesly, in the video game industry, I am not sure I can think of two companies that have disappointed me more.
    As monolithic corporations with demographic-driven attitudes, neither of these companies often produce titles that I have even the slightest interest in.
    They seem perfect for each other. I say go for it guys.
    But Kuronoa’s right… the Madden fans will be steaming at the ears.
    Which actually would be quite funny.

    • ElTopo

      While I hate that idea of these buyouts turning the game industry into one big corporate ass pile, I do agree with you on how much Microshit and Electronic Ass really are terrible. EA has been at least trying to branch out and create new things, and also raise their quality level…but still

  • QBasic

    Well this is an epic fail move on MS’s part…

    • CleruTesh

      How so? Despite the jaded, cynical attitudes I just expressed, it seems economically sound from a business standpoint.
      Is not the Dreamcast’s lack of Madden considered to be part of the reason it was crushed by PS2?
      This may very well be Microsoft’s “finishing move” on the PS3.

      • ElTopo

        Sort of but not really. The PS2 just sold monoliths of consoles and out performed the system, not too mention DVD playback was a huge part as well. Among other things, remember though, NFL 2k and NBA 2K were considered the finest sports games of their time, way outselling the madden of that generation.

      • QBasic

        How much do you think EA costs? Microsoft’s got a lot of money, but they seriously can’t afford EA.

        If they go through with it, they’ll buy the company…and then what? Quite a good chunk of their production money and developer funds would go down the drain. Think of it in a more long-term way; they’ll buy it, and sure, hip-hip hooray. But the quality of the games, and hardware -which is already as shitty as it gets- would go WAY down. They’ll simply open a window for Sony and Nintendo to completely decimate them.

        Not all buyouts are good things.

        • ElTopo

          Buyouts in general are bad. Anytime a big huge corporate giant goes in and buys out mega leaders in an industry its just bad news. Consider the fact that EA also already owns several publishing and dev studios, how many of those would actually survive a merger? Company would probably be gutted.

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