RUMOR - Apple looking to takeover EA?

[heruamon]

mike_intellivision said:

WiiStation360 said:

Micheal Pachter chimes in on the Apple/EA rumor.  He agrees that it does not make much sense.

Wedbush Morgan analyst Michael Pachter is highly skeptical of such talk, however. "Sounds retarded to me," he tells Gamasutra.

"Apple could buy Warner Music for around $3 billion, and control 20 percent of all recorded music," he says. "That makes more sense to their current business model than buying EA for more than twice that, doesn't it?"

"I don't want to start a rumor, but want to point out that Apple doesn't own any entertainment content," adds the analyst, "so I don't know why they would feel compelled to enter a new business unrelated to their current product slate."

 

 

While I certainly do not think Pacther's word choice describing this rumored transaction is in any way shape or form approrprirate, the sentiment is essentially correct.

Apple distributes the content of others over networks using propriatory software and hardware.

EA distributes essentially the same software (games) over a variety of hardware platforms.

This not only does not mesh well from business perspective, but there is a potential clash of corporate cultures.

 

Mike from Morgantown

 

 

 

Pachter is quite often wrong on his predictions...almost frightening wrong, but in this case, it isn't a prediction, and he's spot on about this.  Apple has craved a nice niche in music, and they are coming under pressure in that arena, so to diversify to other area that you totally lack any competentcy would either prove to be absolutely brilliant or the dumbest move in business.