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Analyst says rumors of an EA takeover by Microsoft are "silly"


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.

About the Author

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Stephany Nunneley

News Editor

Half-blind/half-dyslexic, bad typist, wine enthusiast, humanitarian, intellectual savant, idiot savior, lover of all things nonsensical, animal hoarder and highly sarcastic.

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