Quick Jump Daily Digest
Thank you for your interest in the Quick Jump Daily Digest. Get notified of all new content on QJ in our free Daily Digest. To subscribe, enter your email address below and click the subscribe button.
Wall Street Journal: Disney could buy EA |
Listed in: PS3, Wii, PSP, Xbox 360, MMORPG, Nintendo DS Tags: Disney, Electronic Arts, Wall Street Journal
Ó
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.
Related Articles:
Via WSJ.com
| 0% of voters think this story ROCKS! |
|
|












Comments
Reply
EA version of Kingdom Hearts I think I'll pass.
Reply
could anyone imagine "Disney's Skate 3"???
;.( *cuts wrist*
Reply
DISNEY could buy out EA, not the other way around.
Anyway, that would be the most epic pwn of the world.
Reply
Reply
Reply
Reply
Would be ironic justice.
Reply
Reply