Microsoft Denies EA Buyout Rumor

Microsoft Denies EA Buyout Rumor

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Microsoft has denied a rumor that it plans to buy game publishing giant Electronic Arts, a wise move in the eyes of at least one industry analyst, who said the idea seems "silly."

Talk that Electronic Arts was being eyeballed by Microsoft sent the company's share price up by more than seven percent, although that value slid back down somewhat when Microsoft put the kibosh on the story late yesterday. "We have no plans to acquire EA," a company representative told Marketwatch in a very short, blunt statement.

That fact should have been fairly self-evident, at least in the eyes of Cowen and Co. analyst Doug Creutz, who said the odds of a buyout taking place are "inconsequentially low." EA currently earns more than 30 percent of its revenues through titles for the PlayStation 2 and PlayStation 3, he wrote in a research note entitled EA Acquisition Rumors Seem Silly, and ten percent more from the PSP and Nintendo DS. "[Those revenues] would almost certainly disappear in the event of a Microsoft acquisition, since presumably the point of the acquisition would be to secure EA's products as Xbox 360 platform exclusives," he said.

"In our view there is simply no way that Microsoft could make the math work due to the massive hit in EA's revenue and earning post-acquisition," he continued. This is even assuming such a deal would pass regulatory muster, which we find highly doubtful."

Source: GamesIndustry

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Thats uncanny I am listening to Fleetwood Mac as I read this.

On topic isnt the Union of EA and Microsoft a sign foretelling the end of days?

Pipotchi:
Thats uncanny I am listening to Fleetwood Mac as I read this.

On topic isnt the Union of EA and Microsoft a sign foretelling the end of days?

Nah then you only have to worry about crappy games coming from one studio. Just kidding.

Woo! Now I can rest easy about Battlefield: Bad company 2...for now.

And then they must buy Activision.

And then Google will buy them all.

For Google is law.

All hail.

Oh god, if they combine, then games will be double milked, and nickle and diming will be worse than ever.

This will never happen.

Who do they think they are?

Howard Hughes.

Phew, crisis averted.

I was talking with a friend earlier about how such a deal would be really bad for gamers.

Malygris:
"...presumably the point of the acquisition would be to secure EA's products as Xbox 360 platform exclusives," he said.

What if they just kept selling EA games across all platforms? Microsoft would still get a good boost in profits so long as it practiced enough self-control not to make any blockbuster EA titles exclusives...right?

yeah this isn't going to happen, like they said they make buckets of money from the PS2 and PS3, so why would they give up those buckets of money? they'd have to downgrade from money Galleon down to a money corvette in the money fights

WanderFreak:
And then they must buy Activision.

And then Google will buy them all.

For Google is law.

All hail.

Activision is owned by Vivendi and I doubt they'd be in the market to sell.

Which means MS would have to buy Vivendi (which includes Blizzard).

Holy shit they'd be unstoppable...

Good. That would've been a match made in HELL. One Market Saturater merges with a greedy as fuck company to completely fuck up the games industry.

WanderFreak:
And then they must buy Activision.

And then Google will buy them all.

For Google is law.

All hail.

Down with Disney Google! All Hail 4kids Microsoft!

I just had to do an Abridged Series Reference.

that is pretty dumb. i dont believe it for a second

You can bet someone made a nice piece of change when EA's stock went up.

Amnestic:

WanderFreak:
And then they must buy Activision.

And then Google will buy them all.

For Google is law.

All hail.

Activision is owned by Vivendi and I doubt they'd be in the market to sell.

Which means MS would have to buy Vivendi (which includes Blizzard).

Holy shit they'd be unstoppable...

Na. They would have to get Valve first... then well...

Yay for being right and stuff.

I dunno, it just sort of seemed obvious this was nothing more than rumors. There wasn't enough information or a source: it was all word-of-mouth type junk.

there were rumors? WTF?!?!

Amnestic:

WanderFreak:
And then they must buy Activision.

And then Google will buy them all.

For Google is law.

All hail.

Activision is owned by Vivendi and I doubt they'd be in the market to sell.

Which means MS would have to buy Vivendi (which includes Blizzard).

Holy shit they'd be unstoppable...

Wait are you telling me Blizzard isnt an selfowned company o.o and i thought blizz bought Activision . . . im gettign a bit confused here o.O Not to mention that Blizz makes 100+ mil monthly just from subscritions....hard to believe anyone actualy owns them . . .

And on topic. . .i dont see why Microsoft will cancel the ps2-3 games if they buy EA! They can just get some extra games for Xbox n still milk money from the already succesfull franchises that EA has. But im glad that wont happen . . . .would be weird. not to mention big buck deals like this are always hard not to f**k up!

 

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