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WOW! EA Buys 20% of UbiSoft
- Thread starter mcdonnell
- Start date
Deg said:
I thought PoP was a blast. I don't really like the look of this new one, though. Ubisoft, unlike EA, values creating original games with original worlds and original characters. I honestly can't think of an EA game that has those attributes, at least not one released in the past 2 generations.
Doc Holliday
SPOILER: Columbus finds America
So how long until the justice department steps in?
radioheadrule83
Banned
Minotauro said:
I suppose they're that much closer to having a controlling stake I guess.. if they don't have one already...
Either way it's good news for Ubi. The biggest publisher on the planet has shown confidence in them, they potentially have the financial backing to go places.
I'll get all doom and gloom if and when Ubi's games suffer. Not before...
This is great news! Maybe someday Ubisoft can stop with the stupid subtitles and just start calling their games: Tom Clancy's Rainbow Six 2006, Tom Clancy's Ghost Recon 2006, Tom Clancy's Splinter Cell 2006, etc.
And c'mon, don't tell me you're not excited for Prince of Persia Street. I know I am!
And c'mon, don't tell me you're not excited for Prince of Persia Street. I know I am!
Do The Mario
Unconfirmed Member
Is it wrong for me to buy FIFA 2005?
radioheadrule83
Banned
Do The Mario said:
I may be alone here: No it wouldn't, it's good.
D
Deleted member 284
Unconfirmed Member
I believe Accounting 101 states that ownership of 20% or more of a corporation shows a controlling interest.Minotauro said:
radioheadrule83
Banned
TTP said:
They don't have to really, ....
the FIFA liscence gives EA access to 205 football/soccer associations or establishments, teams, likenesses etc.
The Pro Evolution brand has built itself up on being a good footy/soccer sim, quite different from the FIFA games. It has the JPA/Korean football associations, liga, and liscences names and likenesses from FIFpro. So even though EA had a kind of NFL deal in the bag long before Pro Evo, Konami aren't up **** creek or anything.
Ubisoft is one of the best devs of this generation. The Tom Clancy games, PoP's, BG&E, and then they tend to publish some titles that they know won't be a commercial success like Rocky and Tork.
I know some of the elitists think that when a game hits mainstream it suddenly becomes crap... but I think Ubi has done a good job of keeping their franchises fresh and worthy of purchase. EA has also done a good job of keeping the quality of their franchises high. Together, I think they can accomplish great things as long as they have competition to drive them into doing so.
I'm just thankful that some companies are untouchable (Sony, Nintendo, MS, Take-Two) and I hope that the industry will still have enough competition to drive game development into places beyond our imaginations. One game company to rule them all is a bad, bad thing.
I know some of the elitists think that when a game hits mainstream it suddenly becomes crap... but I think Ubi has done a good job of keeping their franchises fresh and worthy of purchase. EA has also done a good job of keeping the quality of their franchises high. Together, I think they can accomplish great things as long as they have competition to drive them into doing so.
I'm just thankful that some companies are untouchable (Sony, Nintendo, MS, Take-Two) and I hope that the industry will still have enough competition to drive game development into places beyond our imaginations. One game company to rule them all is a bad, bad thing.
Idiot Member
Banned
This was an obvious move. I was calling for large investment in Ubi Soft 2 years ago. Microsoft should have done this long ago.
They are a publisher/developer on the rise. Great titles with a lot of potential such as Prince of Persia and Tom Clancy games, Splinter Cell in particular. This is a good response to the likelihood of them losing the bond franchise in years to come.
It means very little overall though. EA will probably partner with Ubi Soft when it comes to publishing, especially in Europe. It's a good thing for them both. Ubi Soft wasn't really all that important, and it's still just 20%, I wonder if they are the largest shareholder.
Pilonv 1 it's not simply up to Take-Two. You still have Activision and THQ for all they are worth. There is more consolidation in the industry to come. Soon I believe we'll have a lot less fluff when it comes to games. I see Square Enix and Konami being the centers of video gaming in Japan, wouldn't be surprised to hear them buyout companies like Namco and Capcom in the coming years. I hope they do before western companies invest over there.
Jedimike, hopefully more companies will open their eyes and respond to EA's more aggresive tactics. I hope we see Microsoft and Sony bolster their development, but I don't really know if itll happen. They don't seem to be thinking about gaming for the long haul.
They are a publisher/developer on the rise. Great titles with a lot of potential such as Prince of Persia and Tom Clancy games, Splinter Cell in particular. This is a good response to the likelihood of them losing the bond franchise in years to come.
It means very little overall though. EA will probably partner with Ubi Soft when it comes to publishing, especially in Europe. It's a good thing for them both. Ubi Soft wasn't really all that important, and it's still just 20%, I wonder if they are the largest shareholder.
Pilonv 1 it's not simply up to Take-Two. You still have Activision and THQ for all they are worth. There is more consolidation in the industry to come. Soon I believe we'll have a lot less fluff when it comes to games. I see Square Enix and Konami being the centers of video gaming in Japan, wouldn't be surprised to hear them buyout companies like Namco and Capcom in the coming years. I hope they do before western companies invest over there.
Jedimike, hopefully more companies will open their eyes and respond to EA's more aggresive tactics. I hope we see Microsoft and Sony bolster their development, but I don't really know if itll happen. They don't seem to be thinking about gaming for the long haul.
LordBlackfire
Member
The latest issue of Gameinformer discusses a class action lawsuit attempt by EA's workforce against the company due to slave labor-like work hours (60 to 80 each week and 6 - 7 days per week) with no compensation. EA's is also no longer offering comp time as they have in the past. Consider the quality of future EA games (including present Ubi games) when the workforce is so obviously demoralized and feels used by EA. Ubi's employees should be worried. I'd expect a lot of people jumping Ubi's ship if EA does grab them lock-stock-& barrel. Hopefully other companies (M$ perhaps) will snap them up. Also, if EA is spending so much to aquire other companies and deals with the NFL, I don't see EA doing much to make things better for it workers.
Idiot Member
Banned
TTP said:
Hopefully Konami approaches them before that happens. With WE being one of their largest titles, it would hurt them badly if EA did this.
I cant believe Monopolies and Mergers commision wont object to this.
It's not "one company with a lot of money buying another company"
It's one company with a huge share of an industry buying another company with a huge share in the same industry, thats exactly what Anti-trust/Monopolies and Mergers commisions are there to prevent. What with the light handed treatment the US gives big business at the moment i wouldnt be suprised if they let it go through, but surely it's an EU issue as well?
P.s. Fucking Endemol, first they ruin TV with big brother now they are ruining gaming too.
It's not "one company with a lot of money buying another company"
It's one company with a huge share of an industry buying another company with a huge share in the same industry, thats exactly what Anti-trust/Monopolies and Mergers commisions are there to prevent. What with the light handed treatment the US gives big business at the moment i wouldnt be suprised if they let it go through, but surely it's an EU issue as well?
P.s. Fucking Endemol, first they ruin TV with big brother now they are ruining gaming too.
Idiot Member
Banned
-SRV- said:
LOL, the chances of that happening are slim to none.
MassiveAttack
Banned
Ubi Soft says Electronic Arts stake building is hostile
Mon Dec 20, 2004 10:25 AM ET
PARIS, Dec 20 (Reuters) - Ubi Soft Entertainment (UBIP.PA: Quote, Profile, Research) said on Monday it would consider U.S. firm Electronic Arts' (ERTS.O: Quote, Profile, Research) stake building as "hostile", until it received further details from the company.
"Pending further information, we consider this operation as hostle," an Ubi Soft spokesman told Reuters.
"We think this operation is aimed at securing the studios of Ubi Soft that are ready to face the next generation of gaming consoles," he added.
Electronic Arts said earlier on Monday it was buying about 19.9 percent of the French video game maker, fuelling speculation it might bid for the whole company.
Electronic Arts, the world's No.1 video game publisher, is buying shares in Ubi Soft as a block from Talpa Beheer BV, the investment vehicle of Dutch media tycoon John de Mol.
Mon Dec 20, 2004 10:25 AM ET
PARIS, Dec 20 (Reuters) - Ubi Soft Entertainment (UBIP.PA: Quote, Profile, Research) said on Monday it would consider U.S. firm Electronic Arts' (ERTS.O: Quote, Profile, Research) stake building as "hostile", until it received further details from the company.
"Pending further information, we consider this operation as hostle," an Ubi Soft spokesman told Reuters.
"We think this operation is aimed at securing the studios of Ubi Soft that are ready to face the next generation of gaming consoles," he added.
Electronic Arts said earlier on Monday it was buying about 19.9 percent of the French video game maker, fuelling speculation it might bid for the whole company.
Electronic Arts, the world's No.1 video game publisher, is buying shares in Ubi Soft as a block from Talpa Beheer BV, the investment vehicle of Dutch media tycoon John de Mol.
krypt0nian
Banned
EA slowly becoming the new Microsoft?
All signs point to "YES"
All signs point to "YES"
The Bookerman
Member
Kifimbo said:
Told you so.
They want the studio and the franchises that come with it.
MassiveAttack
Banned
Electronic Arts Plans to Buy
Nearly 20% of Publisher Ubisoft
By NICK WINGFIELD and ROBERT A. GUTH
Staff Reporters of THE WALL STREET JOURNAL
December 20, 2004; Page B5
Electronic Arts Inc. plans to buy almost 20% of the shares of French videogame publisher Ubisoft Entertainment SA from a Dutch investment firm, in a sign of growing consolidation in the games business.
Electronic Arts, the world's biggest games publisher, said it agreed to acquire the minority stake from Talpa Beheer BV after the firm approached it about a deal. People familiar with the ma tter said the Redwood City, Calif., company agreed to pay between $85 million and $100 million in the transaction, which needs the approval of U.S. regulators.
Warren Jenson, Electronic Arts' chief financial officer, wouldn't say whether the company wants to eventually acquire all of Ubisoft, though he said having a stake in the company could play a role in future transactions. If "Ubisoft was interested in merging with someone this block [of shares] could be important," Mr. Jenson said in an interview.
A s pokesman at Talpa Beheer confirmed the agreement to sell its shares. Talpa, the Dutch holding company of billionaire television producer Jon De Mol, has been expanding its investments in television and telecommunications companies and sees the deal as a s tep toward future collaboration in television programming, the spokesman said, declining to elaborate. "We would like to do more business with Electronic Arts," the spokesman said.
Ubisoft officials couldn't be reached for comment late last night.
The deal comes as Electronic Arts is seeking to enlarge its global presence with a string of deals. This year, the company dispatched one of its top game-development managers to build a local game studio in China, where the company has said it is looking for acqui sition candidates. Electronic Arts Chief Executive Officer Larry Probst has said that the company intends to be a consolidator as smaller game publishers come under pressure from rising game-development costs.
Ubisoft is one of Europe's top publishers of vi deogames, with hit titles such as "Tom Clancy's Splinter Cell" and "Prince of Persia." In an interview earlier this year, Ubisoft CEO Yves Guillemot said EA's growing market share and size are pressuring smaller videogame makers such as Ubisoft to get big g er quickly through mergers and acquisitions. Even if Ubisoft can expand its sales, which totaled $173 million in the first half of its current fiscal year, at a double-digit rate each year, "we have the risk of being too small in five to ten years," Mr. G uillemot said.
The investment also could be a move by Electronic Arts to ward off other Ubisoft suitors. Several videogame makers, including Microsoft Corp., have looked at Ubisoft as a possible acquisition target. Ubisoft wins praise in the industry for recent moves to strengthen its studios and has a large game-development group in China. Ubisoft was instrumental in helping Microsoft get its Xbox game console off the ground in Europe by agreeing to make a version of "Tom Clancy's Splinter Cell" available exclusively on the Xbox for a period of time before offering it on Sony Corp.'s PlayStation 2.
Nearly 20% of Publisher Ubisoft
By NICK WINGFIELD and ROBERT A. GUTH
Staff Reporters of THE WALL STREET JOURNAL
December 20, 2004; Page B5
Electronic Arts Inc. plans to buy almost 20% of the shares of French videogame publisher Ubisoft Entertainment SA from a Dutch investment firm, in a sign of growing consolidation in the games business.
Electronic Arts, the world's biggest games publisher, said it agreed to acquire the minority stake from Talpa Beheer BV after the firm approached it about a deal. People familiar with the ma tter said the Redwood City, Calif., company agreed to pay between $85 million and $100 million in the transaction, which needs the approval of U.S. regulators.
Warren Jenson, Electronic Arts' chief financial officer, wouldn't say whether the company wants to eventually acquire all of Ubisoft, though he said having a stake in the company could play a role in future transactions. If "Ubisoft was interested in merging with someone this block [of shares] could be important," Mr. Jenson said in an interview.
A s pokesman at Talpa Beheer confirmed the agreement to sell its shares. Talpa, the Dutch holding company of billionaire television producer Jon De Mol, has been expanding its investments in television and telecommunications companies and sees the deal as a s tep toward future collaboration in television programming, the spokesman said, declining to elaborate. "We would like to do more business with Electronic Arts," the spokesman said.
Ubisoft officials couldn't be reached for comment late last night.
The deal comes as Electronic Arts is seeking to enlarge its global presence with a string of deals. This year, the company dispatched one of its top game-development managers to build a local game studio in China, where the company has said it is looking for acqui sition candidates. Electronic Arts Chief Executive Officer Larry Probst has said that the company intends to be a consolidator as smaller game publishers come under pressure from rising game-development costs.
Ubisoft is one of Europe's top publishers of vi deogames, with hit titles such as "Tom Clancy's Splinter Cell" and "Prince of Persia." In an interview earlier this year, Ubisoft CEO Yves Guillemot said EA's growing market share and size are pressuring smaller videogame makers such as Ubisoft to get big g er quickly through mergers and acquisitions. Even if Ubisoft can expand its sales, which totaled $173 million in the first half of its current fiscal year, at a double-digit rate each year, "we have the risk of being too small in five to ten years," Mr. G uillemot said.
The investment also could be a move by Electronic Arts to ward off other Ubisoft suitors. Several videogame makers, including Microsoft Corp., have looked at Ubisoft as a possible acquisition target. Ubisoft wins praise in the industry for recent moves to strengthen its studios and has a large game-development group in China. Ubisoft was instrumental in helping Microsoft get its Xbox game console off the ground in Europe by agreeing to make a version of "Tom Clancy's Splinter Cell" available exclusively on the Xbox for a period of time before offering it on Sony Corp.'s PlayStation 2.
element
Member
There is an email from Guillemot stating that this is a hostile move. That he will do everything in his power to keep Ubi, as Ubi. He states that he has a larger voting percentage then EA does, and will vote appropriatly to keep EA from taking more of the company.
If the reported prices floating around are true, it was a steal. Pretty much puts Ubisoft at the same price as Rare, and I'd take Ubisoft with their recent games.
If the reported prices floating around are true, it was a steal. Pretty much puts Ubisoft at the same price as Rare, and I'd take Ubisoft with their recent games.
Konami's already swallowing up various smaller publishers (Success, Hudson, Sting, Genki, Takara/Atlus, etc) but I think both Namco and Capcom are a bit too large for them. More second/third tier aquisitions (like Taito, Tecmo, NIS, From Soft, Asmik, Koei, SNKP, etc) seem more ripe. In the scheme of things Konami might be a big fish in Japan, but worldwide they're nothing next to EA, Nintendo, SCEI, MGS, Activision or THQ. Capcom and Namco actually are valuable enough to try and negociate some sort of merger over a buyout here.Galian Beast said:
Square Enix wouldn't have much interest in either I don't think, and globally they're actually much smaller than Capcom or Namco. I could maybe see a Namco merger here though, as Tales Studio and Monolith Soft would add nicely to SE's RPG cachet and Namco was loosely associated with the others via the stock trade/PlayOnline deal years ago.
I see Namco and Capcom as easily the most vulnerable of Japan's big 6 legacy game companies (Nintendo, Konami, Sega Sammy & Square Enix being the others) though, Capcom especially seems pretty troubled recently. I think the best bet to protect themselves would actually be a merger between the two, as they have surprisingly little overlap in their portfolios, they're about the same size and they share similar platform attitudes and development philosophies.
Idiot Member
Banned
I'm well aware of Konami's investments.
Namco and Capcom have both fallen vastly in their finances, and are no longer the sizeable companies they once were. They have more resources and ip, but definitely don't have the resiliance to defend themselves from buyouts.
Microsoft Gaming Studios compared to Konami... lol.. you're joking right. Konami is definitely a larger game publisher than MGS and probably SCEI too.
Square Enix has large plans for worldwide market penetration, and in past years theve been more profitable than Capcom and Namco, whose success lies mostly in distant years. Square Enix isn't going to limit themselves to RPGs.
I am well aware of Namco's association with Square and Enix regarding PlayOnline and their exchange in a small percentage of stock. I think it was 5% each.
Whether their fate is merger or buyout, I do not know. I'm simply saying that they're the most likely to have to change their business structure in some type of deal.
Namco and Capcom have both fallen vastly in their finances, and are no longer the sizeable companies they once were. They have more resources and ip, but definitely don't have the resiliance to defend themselves from buyouts.
Microsoft Gaming Studios compared to Konami... lol.. you're joking right. Konami is definitely a larger game publisher than MGS and probably SCEI too.
Square Enix has large plans for worldwide market penetration, and in past years theve been more profitable than Capcom and Namco, whose success lies mostly in distant years. Square Enix isn't going to limit themselves to RPGs.
I am well aware of Namco's association with Square and Enix regarding PlayOnline and their exchange in a small percentage of stock. I think it was 5% each.
Whether their fate is merger or buyout, I do not know. I'm simply saying that they're the most likely to have to change their business structure in some type of deal.