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Kotaku: EA Looking To Sell Or Merge

This is the new state of video games, we fucked ourselves... someone please pull us out of this hole we created. EA is the one at fault for their current position. They squandered what good will they had with their practices.

Okay, they get acquired or merge. So what happens then? Do they stop being EA or do they keep their trajectory, they have a "safety net" now. Or maybe they're able to take more risks now that they could have a safety net. What do you think is more likely
 

GhostOfTsu

Member
The best would be Apple or that Comcast (whatever that is).

Sony is probably keeping EA Play for PS Plus in the next few months (as to not steal Ubisoft thunder) so no platform holders needs to waste money with EA bloated garbage.
 

GhostOfTsu

Member
This, so much this. People ignore Nintendo, because since they know they can't beat them, its easier to pretend they dont exist.

No. Nintendo has more hardware sales, more software sales, more profit. Definitely the market leader. Not Sony.
Third-party publishers like EA, Ubisoft, Take 2 and Activision don't make any money with Nintendo that's why Sony is the market leader.

Without Sony they all go bankrupt.
 
Just like MLB and COD, EA's most popular franchises are too big to be exclusives, I wouldn't count on MS or Sony touching this. MS would've been all over it a few years back when Peter Moore was at EA.
 

Jaybe

Member
Just like MLB and COD, EA's most popular franchises are too big to be exclusives, I wouldn't count on MS or Sony touching this. MS would've been all over it a few years back when Peter Moore was at EA.
Agreed. Only another publisher would pick the up or maybe Amazon.
 

Fredrik

Gold Member
With FIFA gone they’re probably not as interesting as a whole company acquisition but Bioware and all their IPs would be a good get.
 

Swift_Star

Member
3rd parties staying multiplatform is the goal
Sony isn't the market leader, as long as pc exist. Consoles represents 20% of gaming, while mobile and pc have like 80% of shares. Just like how Activision + bethesda doesn't make MS a monopoly.

Also remember that console hardware leader is only valid for each gen, before that leader gets toppled by another company.

So Sony can buy EA. But the problem with that, is that it would hinder them from buying other companies, until the deal is done. MS lost crystal dynamics because of Activision buy out. Those 3 studios would have helped MS, if it weren't for Activision.
PC doesn’t belong to anyone and it does not have a marketshare per se lol.
This is absolute not how this works.
 

BlueHawk

Neo Member
Hmm.
Sony/PlayStation won’t have the money at hand.
Xbox can’t acquire this year.

Maybe Embracer group will swallow them up.
 

DenchDeckard

Gold Member
Make no games, sell the company for as much as possible before the market crashes and its riding the last of the tail of the covid boom. Cash in your shares and live on an island for the rest of your days while gamers sit with their shiny boxes arguing about how good theirs is....while 2 games come out a year from their manufacturers and the rest are really decent AA or some indie games, that the majority ignore because they are too busy arguing on twitter.

Meanwhile Nintendo sells millions of games to everyone else and laughs all the way to the bank. Lol.

So yeah, good luck EA.
 
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Dr.D00p

Member
Amazing how the videogame industry consolidation is mirroring the one taken by TV content providers.

..Anyone would think the industry is run by greedy, parasitic CEO's, eager to cash in their stock options, while the going is good. :messenger_smirking:
 

billyxci

Permabanned.
can rule Sony right out unless they only buy a 1 or 2 IPs.

MS are tied up for now. Who knows though...maybe after the Activision Blizzard deal is through and nobody has coughed up for EA then MS could go in for them.

Otherwise I don't know, Take Two maybe? Apple aren't really in the gaming market. If they are looking to come in then this would be a huge get for them to establish a foothold.
 
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kingfey

Banned
PC doesn’t belong to anyone and it does not have a marketshare per se lol.
This is absolute not how this works.
Pc is PART OF GAMING.
Consoles aren't the majority of gaming.

So yes, Sony isn't even close to that. Unless you guys consider consoles to be majority of gaming.
 
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Just keep Respawn games on xbox or PC whomever buys EA. I could not handle having to go with the dual sense or Nintendo controllers. Hate them and would not change platforms due to the controllers.

Microsoft were fools for not buying or locking down Respawn after Titanfall.
 

oldergamer

Member
If anyone buys ea it would be the saudis or amazon, netflix, google, apple, comcast, or MS.

in the range of 50 to 60 billion for purchase.
 

Star-Lord

Gold Member
Sony, in my opinion, would be the perfect partner for EA, but I can't see them buying EA out.

I can see Microsoft handing over the dollar for it, though,
 
Sony should buy the Dead Space Ip BioWare and Maxxis with the Sim City Ip.All would do amazing under Sony and Sony would got more diverse Ips like Sim City.
 

zedinen

Member
Enterprise Value

Activision Blizzard $53.57B

Nintendo $41.86B

EA $35.09B



Our joke of an FTC wouldn't do anything if they bought them. MS already is currently a monopoly outside of gaming...they can use the "theres so much competition" excuse for the media and pay off regulators behind the scenes with speaking gigs and shit.

George Soros's fund buys Zynga, exits Activision in Q1

New Majority Gives F.T.C. a Chance to Push an Aggressive Agenda

FTC's Lina Khan two-for-two in merger block attempts after Lockheed calls off deal

(Feb 3) Nadella - We don’t need to make any concessions to gain regulatory approval

(Feb 9) Call of Duty and “Other Popular Activision Blizzard Titles” Will Continue to Launch for PlayStation and Switch Beyond Existing Agreements


Nintendo is market leader. Look at switch hardware and software sales. Not even close

The Agencies measure market share based on projected revenues in the relevant market. i.e: Sony (platform) and Activision Blizzard (publisher) are the console market leaders in America, followed by Microsoft and EA.




Which is why, neither would face monopoly.

Monopoly would raise alarm bells, when they own 20%-25% of gaming content. They arent even close to that. As long as Nintendo/Sony/MS/Tencent/Embracer and other companies exist, with pc and mobile, no one is monopoly.

You can make studio with enough budget and make tons of games. There is no barrier other than the budget.

The antitrust world is separated into two antagonistic camps, opposed to each other in their doctrines, and policies. The new structuralist regime, in order to prevent big mergers, is trying to replace the consumer welfare standard with an “effective competition” standard.

FTC withdraws vertical merger guidelines
2020 guidance withdrawn to prevent industry and judicial reliance on unsound economic theories; FTC to work with DOJ to update merger guidance


Former Vertical Merger Guidelines


“These Vertical Merger Guidelines outline the principal analytical techniques, practices, and enforcement policies of the Department of Justice and the Federal Trade Commission (the “Agencies”) with respect to a range of transactions often described as vertical mergers and acquisitions.1 The relevant statutory provisions include Section 7 of the Clayton Act, 15 U.S.C. § 18, Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§1–2, and Section 5 of the Federal Trade Commission Act, 15 U.S.C. §45. Most particularly, Section 7 of the Clayton Act prohibits any merger or acquisition if, “in any line of commerce or in any activity affecting commerce in any section of the country, the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly.” This provision applies to vertical mergers, as Congress made plain in the 1950 amendments to the Clayton Act.”

Mergers often present both horizontal and vertical elements, and the Agencies may apply both the Horizontal Merger Guidelines2 and the Vertical Merger Guidelines in their evaluation of a transaction.

1.Evidence of Adverse Competitive Effects

2. Market Definition, Market Shares, Market Concentration

3. Unilateral Effects

4. Input foreclosure and raising rivals’ costs

5. Coordinated Effects


Horizontal Merger Guidelines

1.Evidence of Adverse Competitive Effects

2.Targeted Customers and Price Discrimination

3. Market Definition

4. Geographic Market Definition

5. Market Participants

6. Market Shares

7. Market Concentration

8. Unilateral Effects

9. Innovation and Product Variety

10. Powerful Buyers.
 

Lognor

Banned
Third-party publishers like EA, Ubisoft, Take 2 and Activision don't make any money with Nintendo that's why Sony is the market leader.

Without Sony they all go bankrupt.
That's not how this works. And no, none of these companies would go bankrupt without Sony. Lol
 

Edgelord79

Gold Member
Enterprise Value

Activision Blizzard $53.57B

Nintendo $41.86B

EA $35.09B





George Soros's fund buys Zynga, exits Activision in Q1

New Majority Gives F.T.C. a Chance to Push an Aggressive Agenda

FTC's Lina Khan two-for-two in merger block attempts after Lockheed calls off deal

(Feb 3) Nadella - We don’t need to make any concessions to gain regulatory approval

(Feb 9) Call of Duty and “Other Popular Activision Blizzard Titles” Will Continue to Launch for PlayStation and Switch Beyond Existing Agreements




The Agencies measure market share based on projected revenues in the relevant market. i.e: Sony (platform) and Activision Blizzard (publisher) are the console market leaders in America, followed by Microsoft and EA.






The antitrust world is separated into two antagonistic camps, opposed to each other in their doctrines, and policies. The new structuralist regime, in order to prevent big mergers, is trying to replace the consumer welfare standard with an “effective competition” standard.

FTC withdraws vertical merger guidelines
2020 guidance withdrawn to prevent industry and judicial reliance on unsound economic theories; FTC to work with DOJ to update merger guidance


Former Vertical Merger Guidelines


“These Vertical Merger Guidelines outline the principal analytical techniques, practices, and enforcement policies of the Department of Justice and the Federal Trade Commission (the “Agencies”) with respect to a range of transactions often described as vertical mergers and acquisitions.1 The relevant statutory provisions include Section 7 of the Clayton Act, 15 U.S.C. § 18, Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§1–2, and Section 5 of the Federal Trade Commission Act, 15 U.S.C. §45. Most particularly, Section 7 of the Clayton Act prohibits any merger or acquisition if, “in any line of commerce or in any activity affecting commerce in any section of the country, the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly.” This provision applies to vertical mergers, as Congress made plain in the 1950 amendments to the Clayton Act.”

Mergers often present both horizontal and vertical elements, and the Agencies may apply both the Horizontal Merger Guidelines2 and the Vertical Merger Guidelines in their evaluation of a transaction.

1.Evidence of Adverse Competitive Effects

2. Market Definition, Market Shares, Market Concentration

3. Unilateral Effects

4. Input foreclosure and raising rivals’ costs

5. Coordinated Effects


Horizontal Merger Guidelines

1.Evidence of Adverse Competitive Effects

2.Targeted Customers and Price Discrimination

3. Market Definition

4. Geographic Market Definition

5. Market Participants

6. Market Shares

7. Market Concentration

8. Unilateral Effects

9. Innovation and Product Variety

10. Powerful Buyers.
Great info thanks for sharing!
 

Amiga

Member
Spore.

Lol, no I think the ME franchise has a bit of weight and loyalty but DA doesn't. Every Dragon Age game was so different and the stories are barely connected that as a franchise it's pretty worthless. EA does have several properties that would be valuable to MS though. C&C obviously. The Sims could be a huge market driver for gamepass or other services. Crysis still has some sway. I don't know if Battlefield can ever be great again. Need for Speed would be very valuable for Sony.

That might be all the really valuable stuff for modern gaming, but there is the back catalog too that could boost either of the subscription services.

Forgot about those.

Sport, Sims and backlog are very valuable. And like you said they still have M:NFL, Boxing, NFS and more. The action/shooter games are just a bonus compared to this.
 
Netflix could be a good bet.
They're in a slump right now. Maybe shareholder want a change in leadership.

Wilson does know how to make money.
 

Hendrick's

Member
Makes me wonder why. Is this collapse of major 3rd parties the result of chasing GaaS, AAA budgets and timelines skyrocketing, or the shift towards a subscription model?
 

Jaybe

Member
Should have merged with Activision while the opportunity was there. Would have made the most sense. Doubt the combined company could hold Bobby and Andrew’s egos.
 

DukeNukem00

Banned
PC doesn’t belong to anyone and it does not have a marketshare per se lol.
This is absolute not how this works.

Gaming marketshare. PC is the biggest platform outside of mobile by a signifcant margin. If you put every console sku on the market combined its just barely above PC. Any single console platform is dwarfed in comparison.

 
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Elios83

Member
I don't know, they still make a lot of money but quality wise its a bloated shitty publisher that ruined all its good studios like Bioware. The sports games are their main pillars and they now lost the FIFA branding and in general their business relies on being hugely multiplatform.
I wouldn't spend the money on them but I'm no businessman :messenger_grinning_sweat:
 

Jaybe

Member
Why? Didn't EA do really well financially this quarter?
It’s a sellers market and I suspect in a time of industry consolidation, you want to have a voice and choose your parter before everyone has gone home with another and your left with a drunken creepy Tencent eyeing you up and down.
 
I see them getting picked up by someone we're not expecting. Like a mobile giant or a big investment group. Too much baggage for another console publisher to take on. TBH it's a land mine.
 
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