Wall Street Journal: Disney could buy EA |
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The word "ironic" comes to mind.When we read news like this it's usually EA that's looking to assimilate some small game developer, adding its uniqueness into their (EA's) own.
However, with the company's stock down by 18 percent last Friday from disappointing second quarter earnings, the time could be right for bigger fish who are looking to expand their presence in the gaming market to swallow EA whole.
Chief candidate: Disney, says the Wall Street Journal.
Mind you, this is only speculation on the part of the WSJ and not based on any credible sources. At least, none that they cared to share with us.
"Disney makes the most sense," said a WSJ article by Martin Peers.
Of course, almost any entertainment industry would love to get their hands on EA despite its recent financial problems, but WSJ points to Disney as a great fit.
EA's biggest assets include its sports games, such as Madden NFL, which would fit with Disney's ESPN cable network. Disney also could save at least part of the roughly $200 million it spends annually developing its own games.
Although several years ago, EA was valued at around US$19 billion, they have since dropped to a more "affordable" US$ 7.3 billion. Now we're at the point where Disney could afford it. Peers writes:
At June 30, its net debt was $11 billion, roughly 1.2 times Pali Research's estimate of 2008 earnings before interest, tax, depreciation and amortization. Also, Disney's stock has massively outperformed EA's this year. At a 40% premium, EA would cost $7.7 billion excluding the cash notes the WSJ. Disney would be gutsy to step up during the current economic uncertainty. But it might be better than waiting for better times and paying top dollar.
Personally, I very much doubt anyone is going to be throwing around that much money on that big a risk given the current economic crisis.
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Comments [refresh]
This is definitely something I would have never expected.
This is definitely no one would have expected....
EA version of Kingdom Hearts I think I'll pass.
this would be so so so so so so so so so so so so horrible...
could anyone imagine "Disney's Skate 3"???
;.( *cuts wrist*
Either I misunderstood you or you misunderstood the article ;)
DISNEY could buy out EA, not the other way around.
Anyway, that would be the most epic pwn of the world.
EA will make games for Disney.................................
Disney's Skate 3... ON ICE!
if ea games are required ot have disney ratings, and I mean their normal games not the disney crappy games were screwed
Man it would be so funny if EA got bought out, after all the little companies they`ve bought out, used up, then spat out over the years.
Would be ironic justice.
even a disney on ice franchise would be better than the utter and totall pile of SH** that EA has been making, can u call FIFA a game? its the same game since only god knows when and the only thing they change is the son of a bleep press start screen, the same can be said of madden, medal of horror and all the large list of bullcrap that only morons call "games", not to mention they totally destroyed the burn out series with his fart for speed look alike shi**y features like going around the city like an idiot in paradise and so on, if EA is detroyed, burned or bought by even hersheys to make candys would be a GLORIOUS DAY for the videogames.