Analyst says rumors of an EA takeover by Microsoft are “silly”

Wednesday, 23rd September 2009 22:16 GMT By Stephany Nunneley


Cowen analyst Doug Creutz has weighed in on the rumor that Microsoft plans to takeover EA, and says that the likelihood of such an event are “inconsequentially low.”

According to the analyst, EA garners over 30 percent of its revenue from PS2 and PS3 and Wii, “which would almost certainly disappear in the event of a Microsoft acquisition, since presumably the whole point of the acquisition would be to secure EA’s products as Xbox 360 exclusives.”

EA gets another 10 percent of revenue from PSP and DS handhelds, “which would conceivably be at risk in event of a Microsoft acquisition.”

“There is simply no way the math works due to the massive hit to EA’s revenue and earnings post acquisition,” Creutz wrote in a research note. “This is even assuming such a deal would pass regulatory muster, which we find highly doubtful.”

Most of us do too, Creutz.

More over on Barrons.

Thanks, Herlock.



  1. Grimrita

    Who knows but EA havent made a profit in years now so why not? Microsoft certainly have the cash

    #1 5 years ago
  2. Phoenixblight

    Do you have proof of no profit Grim because with their buyouts last year says they have the money to do so and where does that money come from?

    #2 5 years ago
  3. Yoshi

    Well maybe they should stop bringin out the same old shit every year and maybe spend two years or 3 to make some decent games!

    #3 5 years ago
  4. Syrok


    Hint: If you don’t like a sequel don’t buy. Pass this message along to your friends.


    #4 5 years ago
  5. Yoshi

    Haha thats exactly what i do, i dont buy them :P and thats why they aint gettin money

    #5 5 years ago
  6. swat

    ur bullshit is silly

    #6 5 years ago
  7. jnms

    That dudes reasoning is pretty dumb. So ‘EA’ would lose 30% revenue from dropped PS3 and PS2 sales. But Microsoft would gain bigtime on XBox game sales – and userbase numbers, which is what it is all about.

    #7 5 years ago
  8. freedoms_stain

    40% including PSP and DS.

    Microsoft would be slow to make any gains too, people aren’t going to buy an xbox immediately and there are enough gamers who just don’t care about the games EA make for it to affect them at all.

    #8 5 years ago
  9. jnms

    But then Microsoft needn’t drop the Sony or Nintendo platforms.

    Think of the irony of Microsoft making profit on PS3 games sales!

    #9 5 years ago
  10. Blerk

    What a fantastic picture! :-D

    #10 5 years ago
  11. Grimrita

    @ Phoenixblight
    Just look at their past financial reports – its all there. Loss, after loss.

    #11 5 years ago
  12. Phoenixblight

    Again proof obviously they had money to buy Bioware, Pandemic. Hell even had money to throw at Take Two to hopefully obtain all their titles. They can’t be that much in a loss when they are number 2 on the Publisher list under Activision.

    #12 5 years ago

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