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Thanks to “unsubstantiated” rumors of a Microsoft takeover, stock in EA has climbed 5.24 percent to $19.36.
This rumor has been good for MS as well, as stock in the Seattle corporation has increased by 0.9 percent to $26.
“There’s talk that Microsoft might be interested in acquiring Electronic Arts,”said Frederic Ruffy, options strategist at WhatsTrading.com. “It’s unsubstantiated chatter, but it’s out there.”
A London-based trader told Reuters that similar talk has made the rounds in Europe.
More through the link.
Viewing 38 responses
Peetry said:
Well well, I doubt it will happen but if it does it may have serious implications for playstation!
Michael O'Connor said:
Imagine if this was true though?
The console “war” would be over in a heartbeat.
Peetry said:
Even if they did gain control, could the EA portfolio survive on the 360/PC alone? Or will there be serious downsizing but with all the famous IPs intact
Talyis said:
I called it as soon as I heard Michael Moore heading to EA I new that was there plan! What do you expect 2 monopoly companies working together typical MS/EA actions!
Redh3lix said:
Maybe Alienware should take notice of what is in this industry an “shake the gaming world” announcement. This is a good example.
If this happens, I believe it’ll be VERY bad of PS3 (of course), and tbh, bad for XBox gamers in a way. I say that in the sense MS would milk the EA talent and monetary possiblities to all its worth.
This is bad for both.
freedoms_stain said:
Alienware can’t take notice of anything above the noise of their straining cooling fans.
Psychotext said:
“I called it as soon as I heard Michael Moore heading to EA”
He did what now?
Hunam said:
I doubt it’s true, though if it was, it would be the megaton’s to end all megatons. It would just redefine the industry in a moment.
Things don’t work like that though.
Talyis said:
@Psychotext Michael Moore used to be head of MS and now he’s the head of EA Sports division it seems kinda fishy to me! And if this really does happen That sucks for the career I’m going to school for I just can’t stand M$ they monopolize anything they can get there hands on and if I become a game developer and if Sony or Nintendo leave this industry I would be out of luck because I will never work for a company that backs up M$!
Psychotext said:
I think you might want to look up who Michael Moore is… and then who Peter Moore is.
Also, just some general advice, when you type M$ any point you were trying to make kinda goes out the window.
Herlock said:
Update: Cowen Calls MSFT/ERTS Rumor “Silly”
Cowen analyst Doug Creutz writes in a research note this afternoon that the likelihood of such a deal is “inconsequentially low.” He notes that EA gets over 30% of its revenue from Sony PS2 and PS3 and the Nintendo 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% of revenue from Sony PSP and Nintendo DS handhelds, “which would conceivably be at risk in event of a Microsoft acquisition.”
http://blogs.barrons.com/techtraderdaily/2009/09/23/update-cowen-calls-msfterts-rumor-silly/
Phoenixblight said:
THis can’t be true. THis would destroy all gaming for all other consoles besides Microsoft’s. Wow this is scary shit.
swat said:
WooooooooooooooooooooW
if its true MS win the war !!
BFBD and FIFA and ……….
Uncontested said:
This would be terrible and kill the PS3 nearly instantly unless Sony locked up their own Mega Dev like Take Two, or Activision, etc..
MushroomStamp said:
Only reason I would want this to happen is the hopes that it would free up the NFL license agreement allowing us to finally get a better football game than Madden.
Cort said:
Maybe it’s true. Maybe MS thinks it can’t fend off a cheaper and reinvigorated PS3, so has to write a huge cheque to swallow up one of the big publishers/IP owners instead……
Oh, and the Monopolies Comission says hi.
Psychotext said:
Monopolies commission wouldn’t even blink at an acquisition like this. MS has a tiny part of the gaming market, and even with EA they’d still be no-where near a monopoly.
theevilaires said:
M$ is so pathetic. If this ever happens all the xbots will go into over load and the internet will never be the same again.
Cort said:
Monopolies authorities don’t just deal with monopolies but also anti-competitive practices. If MS bought EA then stopped them releasing games for Sony consoles, for example, the authorities would be very interested indeed.
For instance, MS has been fined millions for packing IE with Windows. No monopoly there, as anyone could then download any browser they chose. But it didn’t stop the authorities from coming down hard on MS for anti-comptetive business practices (wrongly in this instance, in my personal view. I’d rather they went for Apple who refuse to allow me to delete QT from my PC….).
Talyis said:
@Psychotext my bad I thought I might have had that name wrong either way does change the fact that it could happen and your a fool to think it wouldn’t change anything it could seriously ruin the gaming industry and I use M$ because that’s really all there in it for!
theevilaires said:
he’s a xbot. you people have to realized that psychotext loves M$ with every ounce of blood in his body. to him M$ can’t do wrong. I wish i was just joking this time but when some idiot makes up a chart trying to defend the RROD you know he has lost it.
I just wished he would come out about it and get help asap. i’m not joking either
SticKboy said:
I call shenanigans!
Psychotext said:
@Cort: Except they’d never stop releasing PS3 / PS2 / Wii etc games which is why there’d never be a problem. There’s no profit in owning EA without them.
Psychotext said:
Also…
“However, Microsoft spokesman David Dennis dispelled the rumor.
“There is no truth to this rumor,” he said in an e-mail to seattlepi.com, “we have no plans to purchase EA.”"
Cort said:
We’re dealing in total hypotheticals of course, but the payback could be huge. PS console sales would be harmed, probably greatly. And if it were to happen (not that we believe it), taking them exclusive would be the whole point, I would say.
Psychotext said:
For what it would cost them to do that, they might as well cut the price of the 360 to £50 and include 2 new games in a bundle with it. You’d be wiping out 50% of the purchase value of EA instantly… and that’s a lot of money (billions).
It’s just not feasible.
Cort said:
It would still be a good investment. Yes, about 40-50% of EA revenues would be lost when dropping PS support (PC and Nintendo support would remain), but it would increase 360 sales by a large percentage, with a knock-on effect on increased games and other content sales. What god taketh away with one hand…..
Remember that business deals are not always about taking control of revenues, but often about taking control of the market and/or reducing the room for competitors to move or expand. Many companies have made expensive acquisitions to do the latter, often at the expense of the former.
Cort said:
…and MS have shown many times before that they’re willing to spend simply enormous sums of money to beat Sony in this sector.
Psychotext said:
Either way, as with last year, and the year before (and maybe the year before that, I can’t remember)… this aint happening.
reask said:
And Sony are angels confirmed.
I mean lets not forget PS2 era when Sony told devs to get over the problems they had coding for it.
What goes round comes around and to pretend one is better than the other is just bollox imo.
Sony are struggling this gen and MS are doing what any rival would do.
If Sony had not let MS get up before count 10 last gen we would not be having this discussion.
And PS3till be at launch price.
And btw I would mirror it for MS as well.
Cort said:
@Psycho, agreed.
@reask, nobody said Sony were angels. This thread is in response to a Microsoft story. That is why we’re discussing Microsoft.
theevilaires said:
reask Sony is the better evil out of the two. they actually produce great 1st party games with a wide range of genres.
M$ buys out people and have no dignity. They only care about money. No matter how much it seems to all of us here. Sony and M$ don’t give a shit about any of us.
but at least Sony isn’t paying for one year exclusives with multiplayer playing privileges. ($50 x 1million xbot’s subs= GTA4 DLC exclusive content) Wake up my friend and see the worst kind of evil. The evil that kicks you while you are down, the evil that stabs you in the back, the evil that sleeps with your wife and pretends to be your friend. That evil is M$ people. Wake up before its too late.
PS. I got carried away with those last statements
(The Tomb Raider Underground music under the game loading icon is too dramatic so I was under the influence)
reask said:
Sorry tea but I call bullshit on that.
A Euro a week is shag all to pay for on line.
And what about rumble controllers?
I am not trying to pick a fight but I really do fail to see the difference between either when it comes down to the ordinary punter.
Sony or MS will shove it up each others ass to win.
The beauty of having 360 is it gives Sony something to think about this gen.
I love this gen because of healthy comp.
Not because I want one or the other to win.
I own the 360 but would like both.
So do not think I have no respect for Sony.
theevilaires said:
I respect that reask. You are right. They both have their lows and they will do anything they can to one up each other no matter how dirty it is. But that kind of comp can be bad in general for all of us gamers. Everyone enjoys E.A.’s great games as well as take two and acti. Having those publishers as an exclusive house would turn the gaming industry and community in the wrong direction.
I hope something like this never happens for either Sony or M$. If they want to battle it out pound for pound it should be decided by 1st and second party titles. I really hope everyone has a great gaming holiday season this year because great games are coming out for every system. There’s no need to be a fanboy this holiday season everyone wins.
Blerk said:
Heh – don’t we have this rumour every 12 months or so? And it’s never any more true than the last time.
Gadzooks! said:
It’s not going to happen, obviously, which is a real shame because I’d love to see Sony wither and die, leaving room for Sega to come back with a machine that isn’t an optical format trojan and an overpriced waste of time from a company that doesn’t despise it’s consumers.
Sony lost my money with their arrogance and underdelivery and have done nothing to tempt me back with either their attitude or software/hardware. They will never get another penny from me again.
It’s time for a change.
Gekidami said:
^ Text book fanboy rant.
G1GAHURTZ said:
“It’s not going to happen, obviously, which is a real shame because I’d love to see Sony wither and die”
LOL!