Comments on: Wall Street Keen On EA Buyout

By: CleruTesh

CleruTesh — Thu, 24 Sep 2009 08:13:57 +0000

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.

By: ElTopo

ElTopo — Thu, 24 Sep 2009 08:03:30 +0000

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.

By: TTTT

TTTT — Thu, 24 Sep 2009 07:56:46 +0000

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

By: QBasic

QBasic — Thu, 24 Sep 2009 07:49:22 +0000

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.

By: ElTopo

ElTopo — Thu, 24 Sep 2009 07:29:46 +0000

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.

By: ElTopo

ElTopo — Thu, 24 Sep 2009 07:27:43 +0000

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

By: CleruTesh

CleruTesh — Thu, 24 Sep 2009 07:26:04 +0000

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.

By: JeremyR

JeremyR — Thu, 24 Sep 2009 06:59:33 +0000

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.

By: QBasic

QBasic — Thu, 24 Sep 2009 06:51:36 +0000

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

By: CleruTesh

CleruTesh — Thu, 24 Sep 2009 06:49:30 +0000

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.

By: TTTT

TTTT — Thu, 24 Sep 2009 05:29:12 +0000

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

By: TTTT

TTTT — Thu, 24 Sep 2009 05:28:08 +0000

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?

By: Hiryuu

Hiryuu — Thu, 24 Sep 2009 04:39:18 +0000

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.

By: ECM

ECM — Thu, 24 Sep 2009 04:30:08 +0000

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

By: Kuronoa

Kuronoa — Thu, 24 Sep 2009 04:27:58 +0000

Just having Madden exclusive to one console would cause riots.