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Forums - Gaming Discussion - Rumour: EA Has Been Looking to Sell or Merge

If EA gets bought by Disney - one of two things will happen.


They'll eventually be absorbed into Disney Interactive which is a shell of what it used to be in terms of output

Or EA will be absorb Disney Interactive and become a force in Disney that would lead to new games in existing IPs from Disney's side , etc.



    

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Mar1217 said:

After the falling out of grace of DICE with the Battlefield series, it feels like EA doesn't have much assets appart from the football games and Respawn to justify the prices of sales you guys are talking about.

Somethin' tells me they're the side of the equation asking too much which might've been the falling out of why those deals ultimately fell appart so far.

Their market cap is $36bn so that's what they're worth at minimum, almost always (or always) a premium is paid too, the vast majority of premiums are between 10%-50%. Microsoft's premium on Activision-Blizzard was 45% by comparison. We're looking at anywhere from $39bn at the lowest average to $54bn at the highest average, they definitely aren't selling at the lowest though.



It wouldn't surprise me a bit if true, there's a lot of uncertainity in EA's future.

For decades, FIFA Soccer has been a huge, constant and realiable source of money for EA. This could change in 2023. The current EA-FIFA deal ends after FIFA 23 and no agreement to extend it was reached. In terms of content, there shouldn't be a big difference. EA has many deals with leagues, teams, etc. However, it'll lose the FIFA brand, so its name will be EA Football whatever 24 or something like that. Marketing-wise, this could be huge.

There's more than that. Of course the FIFA won't just sit there doing nothing and not earning money. They'll try to find a new partner to make FIFA games. If they succeed, EA's 2024 football game will not only lose the FIFA brand, it'll also have to compete with a football name sporting the FIFA name on its cover.



No mention of Tencent, Embracer Group, or the Sauid Prince talking it over so far.



Quick. Someone buy EA and then shut them down! It’ll be the ultimate justice for what they have done with so many studios.



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I really wonder what the state of the videogame industry really is if most major publishers are selling themselves. Do they know something that we don't?



You know it deserves the GOTY.

Come join The 2018 Obscure Game Monthly Review Thread.

Darwinianevolution said:

I really wonder what the state of the videogame industry really is if most major publishers are selling themselves. Do they know something that we don't?

Frankly there are tons of factors:

- gaming was particularly huge during covid, and gaming is a huge industry and that isn't changing. 

- high inflation means that companies have incentive to acquire assets and part with devaluing cash. 

- services like Gamepass, require a lot of content. As found by Netflix, at some point it starts making more sense to make content in house. 

- higher competition is pushing other buyers to spring into action. This is pushing prices higher, and increases incentive for sellers.

This is not an exhaustive list. There's also an issue that Chinese publishers have been desperately expanding into other markets because the market is having government troubles in China. Which in turn has been increasing demand for buying publisher. 

Last edited by the-pi-guy - on 21 May 2022

the-pi-guy said:
Darwinianevolution said:

I really wonder what the state of the videogame industry really is if most major publishers are selling themselves. Do they know something that we don't?

Frankly there are tons of factors:

- gaming was particularly huge during covid, and gaming is a huge industry and that isn't changing. 

- high inflation means that companies have incentive to acquire assets and part with devaluing cash. 

- services like Gamepass, require a lot of content. As found by Netflix, at some point it starts making more sense to make content in house. 

- higher competition is pushing other buyers to spring into action. This is pushing prices higher, and increases incentive for sellers.

This is not an exhaustive list. There's also an issue that Chinese publishers have been desperately expanding into other markets because the market is having government troubles in China. Which in turn has been increasing demand for buying publisher. 

I get publishers wanting to buy, but I don't get piblishers wanting to sell. There have been too many big sales (and many other imminent ones) of major publishers to be just a result of inflation and gamepass-like services.



You know it deserves the GOTY.

Come join The 2018 Obscure Game Monthly Review Thread.

Darwinianevolution said:
the-pi-guy said:

Frankly there are tons of factors:

- gaming was particularly huge during covid, and gaming is a huge industry and that isn't changing. 

- high inflation means that companies have incentive to acquire assets and part with devaluing cash. 

- services like Gamepass, require a lot of content. As found by Netflix, at some point it starts making more sense to make content in house. 

- higher competition is pushing other buyers to spring into action. This is pushing prices higher, and increases incentive for sellers.

This is not an exhaustive list. There's also an issue that Chinese publishers have been desperately expanding into other markets because the market is having government troubles in China. Which in turn has been increasing demand for buying publisher. 

I get publishers wanting to buy, but I don't get piblishers wanting to sell. There have been too many big sales (and many other imminent ones) of major publishers to be just a result of inflation and gamepass-like services.

You get quick cash. 

Activision has a revenue of $8 billion, $2.2 billion net income. They're being sold for about $70 billion. That's 9 years worth of revenue, in months. Investors are going to be making billions from their investments. 



A buyout probably wouldn't be the worst outcome... If the new owners push for quality over quantity and brings back old, dead franchises that have been forgotten to time.



--::{PC Gaming Master Race}::--