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Forums - Nintendo Discussion - Nintendo could buy EA when they're near Bankruptcy!

marc on 15 January 2010

EA is insanely overvalued right now. Its market value is still hovering around $5.5 billion and a P/E of around 30 based on their old profitable quarters never mind that they are losing $1b a quarter right now.

IMO, the price is much to high which is why no one is approaching them. Many on wall street actually hyped up EA on a buyout early in 2009 and it has remained high on that speculation. If it were not for hype the company would be around $10/share with a value of around $3b which is still more than I would pay for them.

Nope the best deal on wall street was TTWO and Icahn jumped all over it pushing the price up over $10 a share. THQ is still somewhat reasonably priced but they don't have as many solid IP's. Blizzard of course was bought out by Activision and will probably be run to the ground in the next 4-5 years.

If I were one of the big guys, I would create my own studios. There is nothing worth buying right now.



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SaviorX on 15 January 2010
shams said:
Any why would Nintendo want to buy a company becoming bankrupt?

I'm sure EA is worth heaps on paper - ignore cashflow - just based on their IPs. They could sell a couple of good ones off (Sims?) and generate billions. But its a short-term solution...

Best spin the company into two - profitable and unprofitable. Close half the studios, fire 70% of employees. They will be back to making money.

*bravo*



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LordTheNightKnight on 15 January 2010

Buy the Dead Space IP if 2 doesn't make enough money. Then we can see what the actual series does on the Wii.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

NJ5 on 15 January 2010
marc said:
EA is insanely overvalued right now. Its market value is still hovering around $5.5 billion and a P/E of around 30 based on their old profitable quarters never mind that they are losing $1b a quarter right now.

IMO, the price is much to high which is why no one is approaching them. Many on wall street actually hyped up EA on a buyout early in 2009 and it has remained high on that speculation. If it were not for hype the company would be around $10/share with a value of around $3b which is still more than I would pay for them.

Nope the best deal on wall street was TTWO and Icahn jumped all over it pushing the price up over $10 a share. THQ is still somewhat reasonably priced but they don't have as many solid IP's. Blizzard of course was bought out by Activision and will probably be run to the ground in the next 4-5 years.

If I were one of the big guys, I would create my own studios. There is nothing worth buying right now.

If you go by PE I think almost all companies are terribly overvalued right now... Bernanke's printing press and all.

 



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SecretAsianMan on 15 January 2010

And why would Nintendo do something like this? All EA ever does is publish rehashed sport games every year. Even big franchises like the Sims are getting repetitive. This runs totally counter to Nintendo's philosophy.



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Showertea on 15 January 2010

Okay, guys, riddle me this: Why does Nintendo, who owns Mario, Zelda, and Pokemon need to buy EA's IPs? Nintendo owns, and is responsible for creating, the best selling and most successful franchises of all time. They don't need to buy Dead Space or Madden.



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jefforange89 on 15 January 2010

Also, I think the license EA has for NFL stuff and what have you states that they have to keep it multiplatform.

So, if Nintendo (or Microsoft or Sony) were to buy them, that would fuck that over.



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Moren on 15 January 2010

I can see microsoft doing that...



LordTheNightKnight on 15 January 2010
SecretAsianMan said:
And why would Nintendo do something like this? All EA ever does is publish rehashed sport games every year. Even big franchises like the Sims are getting repetitive. This runs totally counter to Nintendo's philosophy.

You don't buy the business model. You buy the IPs and the other resources.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

Pure on 15 January 2010

Buy the MOH IP and get Retro Studios to make a game, Wii Exclusive.