Will Electronic Arts be bought out?

Analysis-Electronic Arts, as a company, are underperforming. The industry as a whole is booming like crazy yet EA are delivering lackluster results both in terms of growth and in terms of profit. Meanwhile competitors like Activision/Blizzard and Ubisoft have been massively outperforming.

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Bruce Everiss3604d ago ShowReplies(2)
Forbidden_Darkness3604d ago

If there going to be bought by a company, please dont let it be activision.

Zip3604d ago

LOL yeah!!!! that way we will see 4 call of dutys each year xD

beavis4play3604d ago

it's hard to imagine any entity taking such a huge risk as to buy something the size of EA.

Bruceongames3604d ago

EA at today's stockmarket price is worth just $6 billion. There have been masses of takeovers far bigger than this. Vodaphone, for instance, paid $183 billion to buy Mannesmann.

Now is the time to buy with the stock price so cheap and there are plenty of companies that can easily put their hands on $6 billion!

coolfool3604d ago (Edited 3604d ago )

EA being buyable is one aspect but another is who would want to buy it? Who wants to buy a ship with a hole in it? Now, if a buyer thinks that hole can be patched then they might be interested. But if it was that easy then you'd imagine the current guy at the helm attempting to do just that. What if the problem was more deep rooted than that? What if the devs working for EA just aren't good enough?

Now I don't really believe that, plenty of games show that there is talent within the depths of EA. As some other gamers have suggested in other comments, it is probably a change in EA's development model that needs to change. They need to hold of on getting the returns from a game just that little bit longer so that the game ships only when it is really ready. This will involve a slightly less greedy approach than what they have been taking of late.

Jdoki3604d ago

Off topic: Yeah, and when Vodafone paid that for Mannesmann the knock on effect was a re-stating of price and the biggest ever loss reported in UK corporate history! :)

On topic: I think EA are going to do OK. They are a bit bloated, and could probably do with pruning a bit of middle management, but they've identified that new IP is important for their image - even if it's not really contributing to the profitability (but then again what new IP has done seriously well in 2008? Possibly Dead Space, but everything else has been lacklustre).

I can see their sports division evolving over time now Peter Moore is at the wheel.

EA have already come a long way from the company that just churned out yearly updates of core franchises.

Who knows... Their underperformance now, may be directly related to internal restructuring efforts.

I would also argue that 'booming' might be a bit to strong a term for the video games market. It's much more recession proof, but it will suffer.

Any comparisons to Ubi or ActiBlizz are a little foggy at best. Each has got to the size they are today through extremely different means.

Ubisoft through organic growth and new IP.
ActiBlizz by merging
EA through their core IP/franchises and 'asset stripping' other developers

Oh, and finally... Why no jab at the PS3 Bruce? I would have thought you'd have found some way to lay EA's apparent slump at the door of the PS3!! :)

Mr_Bun3604d ago

The day I start taking Bruce seriously is the day Patcher becomes systematically correct with his predictions

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Final_Rpg3604d ago

EA have actually released some decent games this year. E.g. Mirrors Edge, Spore, Dead Space and Fifa was better than usual. Much more quality than I anticipated from them

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