Microsoft to takeover EA (Rumour)

lee87 · 23 Sep 2009 at 21:07

Rumblings of a Electronic Arts takeover by Microsoft have driven Wall Street into a frenzy this morning.

Reuters is reporting "unsubstantiated talk" of a possible sale have caused shares to jump for both companies. Electronic Arts saw a jump of over 8% to $20.01, while Microsoft's increased 1.1 percent to $26.05

"There's talk that Microsoft might be interested in acquiring Electronic Arts. It's unsubstantiated chatter, but it's out there," said options strategist Frederic Ruffy.

Analyst Trip Chowdhry said talk of this sale is unjustified. "Our contacts just don't see Microsoft buying Electronic Arts, no synergies whatsoever, and also not Microsoft's corporate primary focus right now."

Electronic Arts and Microsoft have yet to issue any comments on this story.

Wedbush Morgan analyst Michael Pachter told IGN a sale of this magnitude is highly unlikely.

"Their value as a one platform exclusive publisher is lower than their value on multi-platform. A media company would pay a lot more," he said. "Also, most licenses would terminate."

http://uk.xbox360.ign.com/articles/102/1027673p1.html

Can't see it happeninig myself but i'm hoping this isn't true as it would be a massive blow to Sony and could change the video game industry.

SiD the Turtle · 23 Sep 2009 at 21:12

I'll eat my hat* if it happens.

*Note: I don't own a hat.

Streeteh · 23 Sep 2009 at 21:35

I can't see it even being possible. I'm no expert but i'm fairly sure there's a fair trading bureau that ensures that no company gets a huge advantage over the competition. Acquiring EA would basically make all other consoles fail as a huge portion of the big titles every year are produced by them (Fifa being the key title). With only one console receiving EA games that would give them an insane advantage over the competition.

Thesnipergecko · 23 Sep 2009 at 21:49

Didn't somebody from Microsoft leave there to go and work at EA? Hmmmm conspiracies

AGD · 23 Sep 2009 at 21:51

It won't happen for the reasons pachter said. It doesn't make sense economically for microsoft or the shareholders of ea.

rp2000 · 23 Sep 2009 at 21:56

Thesnipergecko said:
Didn't somebody from Microsoft leave there to go and work at EA? Hmmmm conspiracies

Peter Moore.

I suppose this is possible, Doubt mergers commission would care as EA are number 2 biggest developer behind Activision/Blizzard, and still would be as MS don't have that many game studios (to overtake them, or maybe they do?)

Also the article says licenses (i.e. all annual refreshes which are prob most of EA's income) would go. Also it would not be in Microsoft's interests to only restrict EA games to their console, I am sure combined sales of non 360 EA software probably outsells 360 stuff.

rp2000

msmalls74 · 23 Sep 2009 at 22:40

Probably some site wanting to increase profits from some EA share dealing lol, think ive seen this same article several times over the last few years and it didnt happen then cant see it now. If it did happen im sure EA wouldnt be happy selling to a small % of the gaming market instead of the whole industry, i would also expect that the NFL,FIFA, NHL etc would also pull there exclusive deals with EA as they would also be getting a smaller peice of the pie. What would MS actually gain from this? MS do like to beat there chest and go look at me (much like most big companies) but the 10 billion or so dollars they would need to spend on EA would take an age to get back from just 360/pc games sales. The other consoles do not depend on EA and only the franchise sports games and the sims sell in any great number, and like i said i expect them to move on if this happens.

interspaced · 24 Sep 2009 at 01:47

lee87 said:
http://uk.xbox360.ign.com/articles/102/1027673p1.html

Can't see it happeninig myself but i'm hoping this isn't true as it would be a massive blow to Sony and could change the video game industry.

Don't neglect nintendo as well. I doubt this will happen as i'm sure the competition watchdog would put a stop to it hopefully.

GTanny · 24 Sep 2009 at 06:10

SiD the Turtle said:
I'll eat my hat* if it happens.

*Note: I don't own a hat.

if it happens i have my top hat from my wedding and ill post that to you with some HP sauce

Dup · 24 Sep 2009 at 09:17

Well... someone needs to swallow up EA, line up the people responsible for outputting revisions of games rather than creating new games that aren't already crap and slap them with a big wet fish until they cry home to mummy.

Then when all the hype dies down, let all the previously oppressed creative bods from EA's development houses create a new Road Rash complete with cheesy FMV and an awesome soundtrack. *crosses fingers*