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Forums - Gaming - RUMOR - Apple looking to takeover EA?

I told you but you ALL laughed at me and now- now it is too late!

Now every year we will have to buy a new system with slight up grades on it just to play Madden (which we buy every year for slight upgrades).




(j/k)

Apple does need EA



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apple wont do it.



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Killergran said:
goddog said:

well played         I could list the entire back portfolio or just whats  for sale now, either way it covers pretty much the same areas as MS. with the noted exception of video/computer game production. and apple does have a history of buy companies/applications to break into an industry.... Itunes bought, final cut bought, OSX bought,  granted all of those were rough and not  recognizable as what we use today or even recognizable from when they were bought to when apple first used it as an apple product (well except OSX 10.0 looked alot like nextstep with just a bit more polish and alot less stability )

Right. But what would the point be to buy EA? It's value would decrease a lot if they only made stuff for apple platforms, and it would be much much cheaper to moneyhat for the content if that's what you want.

They're not competing with each other, so you don't eliminate a competitor. They're not working with each other, so there wouldn't really be any integration. EA has nothing that Apple wants. And the two companies have, as far as I know, radically different corporate cultures, ideologies, goals and strategies. So what, really, is the potential upside?

AppStore has proved a monumental success for Apple, as well as iTunes. Why move away from this new approach and go back to the old way? It feels like it would go against everything Apple stands for.

 

...

 

Nintendo on the other hand, that I could see. That would have a much bigger potential for catastrophy, but could also make for gigantic success. :) I think.

they came very close to buying nintendo before the wii came out  our saviour jobs was even in japan to talk to big N

 



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I don't think they'd buy EA but they easily have enough cash to do it today if they wanted to.



I just hope this does not lead to the iConsole. It would be severely overpriced and only hipsters would buy it.



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I think this is a really bad move on Apple's part unless they plan on making the ipod touch/phone into a decent gaming platform.



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

 

 

I think the clash of corporate cultures is what sinks this rumor. Apple's resurgence over the past 10 years has been the result of their ability to reinvent themselves as a lifestyle brand. EA is pretty much the exact opposite of a lifestyle brand.

If you try to merge the two, Odd Couple hilarity ensues.



"Ho! Haha! Guard! Turn! Parry! Dodge! Spin! Ha! Thrust!" -- Daffy Duck

@OP,

Its a rumor, that's all it is. Its not likely going to happen.

Apple didn't get rich by writing a lot of checks. EA has been losing money, and the proposed aquisition of EA doesn't really help them with their bottom line anyways (i.e. computers).

I think Apple is pretty content with EA making iPhone apps and not having to carry the risk and the burden of running a videogame company.



I wonder if the Apple console rumours have anything to do with this? If its true then they could essentially force EA to make games for their platform as well. So in the context of creating their own console this does make sense.



Tease.

goddog said:

did some research apple has cash on had to buy actvision-blizzard , take two, EA. lock stock and barrel.


I used market cap +20% as the sell price for each company vs apples cash on hand......

 

well damn the 35 billion does not seem to have a source, lattest sourced artical has them with 25.65 billion still more then enough cash   http://finance.yahoo.com/q/ks?s=Aapl

 

edit

actvision-blizzard  14. 21 B cap

 

Take two 727.28 million cap

 

 

EA  6.77 billion cap

 

 

apples   117.62 cap

 

According to the latest financial report conference call, Apple has some $28.9 billion in the bank. But they also mentioned their policy is to keep the money, not spend huge sums.