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NYP Rumor: EA officially up for sale, KKR and Providence interested
- Thread starter RSTEIN
- Start date
efyu_lemonardo
May I have a cookie?
excellent.gif
Did everyone forget that EA is sueing Zynga for copyright infringment and will probably win? EA isn't going anywhere... They are the biggest video game publisher in the country. That would be like Walmart deciding it can't compete with Walgreens and selling.
This is a FOXNEWS troll attempt, and you all fell for it.
This is a FOXNEWS troll attempt, and you all fell for it.
Why would you want less competition? That'd be like saying "Wal Mart to buy Target and shut down their stores, please.".
No, it'd be like Target buying Nordstrom and shutting down their stores...
Also, the Wallstreet journal only says "The paper said EA has been approached by private-equity giants KKR and Providence Equity Partners about a potential deal. Representatives for EA werent immediately available for comment. "
If I went to Gabe and offered him $100 for Valve, would they suddenly be exploreing a sale? No.
If I went to Gabe and offered him $100 for Valve, would they suddenly be exploreing a sale? No.
Sony should buy Visceral for Dead Space and DICE for Mirror´s Edge, leave the rest to rot.
Dreams-Visions
Member
Why would you think it's worth more?
diffusionx
Gold Member
They're not looking to exit. They are most likely looking to go private.
Triple Da G.O.D!
Member
Somebody buy them and turn back on all the online servers.
The public corporation seems wildly incompatible with an industry that moves as fast as this one does.
Which is a fault of Zynga's lack of quality ip and execution, not the longterm strategy.
It's really shortsighted to assume that Zynga's current struggles changes the end game for EA.
mocolostrocolos
Member
All we needs is 1 person to have a card like this
Pfft...
We need this, a baller card:
JaseMath
Member
Why not?
Rebel Leader
THE POWER OF BUTTERSCOTCH BOTTOMS
Pfft...
We need this, a baller card:
Why not both?
I may be late to the party so to speak but it wouldn't surprise me if EA and Disney hooked up, with a restructuring with removing Disney Interactive name and going with EA as the development name with publishing done through the BVG publishing label that Disney currently owns.
LukasTaves
Member
Zynga is in full-on tank mode and it's business is eroding and EA has a few hugely successful Facebook titles themselves. This doesn't make any sense.
diffusionx
Gold Member
I agree. It's something that people have many times in the past. I guess it made sense from like, 1995-2005 when the industry was exploding and based on selling boxes in stores, but it's not so good these days.
This
Metalmurphy
Member
Man, if either Microsoft/Nintendo/Sony end up buying it they'll automatically win the next few generations.
Can you imagine the FIFA/NHL/Madden/NFS games exclusive to one console?
Can you imagine the FIFA/NHL/Madden/NFS games exclusive to one console?
I dont think Sony has $6.5 Billion to spend. Microsoft does.
Bro gaming heaven.
Metalmurphy
Member
They just bought EMI for 2.2 billion, Gaikai for 300 million, Ericson for 1.47 Billion. I'm sure if it was really important, and if it's actually for sale, they'd manage.
More Fun To Compute
Member
In previous generations companies like EA have banked on the rising development costs ruining their smaller competitors so they could buy them up cheaply or just watch them fail. Now with this gen and the next it's a case of what comes around goes around. When they failed to buy take 2 their strategy failed and they became prey instead of a predator. Rockstar North killed EA with GTAIV.
Fox Mulder
Member
Sony has cash, they just also have tons of debt.
witchedwiz
Member
They want to be more like zynga?
Didn't zynga stocks become like... A LOT lighter during the last months?
EA has gone into self-hating and wants to go bankrupt....
Believe
Didn't zynga stocks become like... A LOT lighter during the last months?
EA has gone into self-hating and wants to go bankrupt....
Believe
That is the point. They have burned a ton of their cash on hand already. If Microsoft wanted EA there is nothing that Sony could do to stop it.
Going private offers a company like EA a lot more management flexibility. Public corporations add a lot of pressure for near-term growth/profits that don't really coincide with an industry that's not very predictable.
Sony afaik has about $8-9 billion cash on hand
They can do it, but it would be way too risky
Metalmurphy
Member
Is that all they have? In that case they definitely can't do it. 2,5 Billions is way too little for a company as big as Sony to live on.
Man-is-Obsolete
Member
I didnt say they didnt have any cash on hand. I said that they didnt have it to spend. They are not going to wipe out half their cash on hand. Even if they wanted to, Microsoft could easily out bid them.
Sony has $16 Billion in Cash and Short Term Investments. Microsoft has $63 Billion.
They would downsize the hell out of the majority if their studios and probably allow their sports licenses to expire.
SpinningBirdKick
Banned
It doesn't make sense for Sony, Microsoft or Nintendo to buy them.
The value in EA (and Activision) as a company is in their IP and licenses for multiple platforms.
If you buy the company to concentrate on your own console(s) it's a big bet to place hoping that the value you have written off (from the platforms that you force EA to abandon) will be replaced by new customers of your hardware platform to play the titles.
The reason that EA are in this position is that their costs are increasing but customers are leaving because they're getting tired of the same old genres and annual retreads.
So as a buyer of EA today, their brands and licenses may not have as much value as you originally thought after just another 12 or 24 months.
With the more expensive next generation looming, there's no wonder EA wants out.
The value in EA (and Activision) as a company is in their IP and licenses for multiple platforms.
If you buy the company to concentrate on your own console(s) it's a big bet to place hoping that the value you have written off (from the platforms that you force EA to abandon) will be replaced by new customers of your hardware platform to play the titles.
The reason that EA are in this position is that their costs are increasing but customers are leaving because they're getting tired of the same old genres and annual retreads.
So as a buyer of EA today, their brands and licenses may not have as much value as you originally thought after just another 12 or 24 months.
With the more expensive next generation looming, there's no wonder EA wants out.