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Forums - Gaming Discussion - Rumor: Microsoft interested in buying EA

noname2200 on 23 September 2009

Found via NeoGAF:

http://www.reuters.com/article/marketsNews/idCNN2339589020090923?rpc=44

Shares of Electronic Arts Inc (ERTS.O) jumped more than 4 percent to $19.36 on Wednesday on unsubstantiated talk that Microsoft Corp (MSFT.O) might be interested in buying the video game publisher, traders said.

"There's talk that Microsoft might be interested in acquiring Electronic Arts. It's unsubstantiated chatter, but it's out there," said Frederic Ruffy, options strategist at WhatsTrading.com in New York.

A London-based trader also cited similar talk as making rounds in Europe. Microsoft shares were up 0.9 percent at $26 on Nasdaq.

It's probably nothing. But I thought I'd pass it along anyways.



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Vetteman94 on 23 September 2009

I dont see this happening at all



noname2200 on 23 September 2009

Why not? If they were willing to write a check to buy Nintendo not too long ago...



nordlead on 23 September 2009

That would be huge if it happened, but highly unlikely. EA makes its money by producing multiplatform games. Microsoft would either be forced to produce games for competitors hardware or throw away 4/5ths of EA's potential income which would make the company worthless. Granted EA does make some exclusives, but Microsoft would be better off buying a highly talented studio that focuses on 1 platform at a time. So a company like Level 5 would be a better choice.




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disolitude on 23 September 2009

Haha...that would be funny on sa many ways.

Peter Moore, secretly working for MS...all along...

Letting EA buy bioware, then buying bioware back by buying whole of EA...quite hillarious.



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Vetteman94 on 23 September 2009
noname2200 said:
Why not? If they were willing to write a check to buy Nintendo not too long ago...


I dont think EA would be interested, I am sure they make alot of money put games on the Wii, PS3, DS, PSP and PS2.   I dont think they would be willing to give up that kind of revenue to make games for one platform



Grimes on 23 September 2009

I don't believe it. Somebody is probably trying to manipulate the stock price.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

scottie on 23 September 2009

scottie gets to apply his mad financial skills(z)

MS has
49,280,000 in short term assets and
27,034,000 in short term liabilities

They recieve net income of 14,569,000

EA has total equity of 3,134,000

So MS certainly has enough money to purchase them without borrowing further. It is just a question of whether they would want to

All numbers taken from yahoo finance



dolemit3 on 23 September 2009
Vetteman94 said:
noname2200 said:
Why not? If they were willing to write a check to buy Nintendo not too long ago...


I dont think EA would be interested, I am sure they make alot of money put games on the Wii, PS3, DS, PSP and PS2.   I dont think they would be willing to give up that kind of revenue to make games for one platform

Looking at their financials, they don't make any money at all for the last few quarters.



Currently playing on PS3: God of War III

Currently playing on Xbox360: Final Fantasy XIII

Currently playing on NDS: Chrono Trigger

disolitude on 23 September 2009

I hope they don't actually... EA makes shit "me too" games other than few bioware gems.

Having MS choose which game they want to publish is a much better strategy...