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Castleman12

(Rumors) Microsoft thinking of buying EA?

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Not going to happen.

Though, if it did, Microsoft would be pretty close to having a monopoly on the games market.

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Wow, talk about creating a superpower. :P

 

Though I doubt things would improve with MS at the head.

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Update: Microsoft Has 'No Plans' To Acquire EA

 

Microsoft Has 'No Plans' To Acquire EA

Gaming's biggest merger isn't happening, folks.

by Jim Reilly

 

US, September 24, 2009 - As many analysts predicted earlier, software giant Microsoft has no intention of purchasing Electronic Arts, one of the industry's top game publishers.

 

"We have no plans to acquire EA," a Microsoft spokesperson told Market Watch.

 

Reports yesterday fueled speculation when "unsubstantiated talk" of a sale between the two companies caused shares for Electronic Arts to jump more than 8%. "There's talk that Microsoft might be interested in acquiring Electronic Arts. It's unsubstantiated chatter, but it's out there," said options strategist Frederic Ruffy to Reuters.

 

Wedbush Morgan analyst Michael Pachter told IGN that EA would never agree to sell to a company like Microsoft.

 

"Their value as a one platform exclusive publisher is lower than their value on multi-platform. A media company would pay a lot more," he said. "Also, most licenses would terminate."

 

This news won't end chatter about Electronic Arts' eventual sale, however, as it's believed the company is getting looks from several media giants, including Time Warner and Disney.

http://xbox360.ign.com/articles/102/1028017p1.html

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Actually, I could rather picture EA being part of Microsoft for some reason. Not that I exactly want it to. XD But why does IGN keep posting things about a company wanting to buy EA? Time Warner and now Microsoft?

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But why does IGN keep posting things about a company wanting to buy EA? Time Warner and now Microsoft?

 

Well when you get 2 companies considered to be at the top of the corporate "food chain", of course they're gonna go nuts. Such things are usually mergers where they buy an equal share in each other. Blizzard-Activision is a prime example in that regard.

 

Had this deal been true. I imagine the monopolies commission would have a field day. But then the MC are useless. The European MC are probably the harshest, and the media claims they hate Microsoft with a passion. But really a few $100,000 fines isn't exactly a dent in their pockets. I'd be more in favour of the MC charging a fine equal to, or greater than either the take-over price of the company they swallow, or 3-5 years revenue that company would make under the corporation's banner. Exclusions to this rule would only apply if the company they take over are a significant 'loss leader' in the industry and need to be saved in face of certain bankruptcy.

 

Sure the games industry isn't as strong as it could be. But acutioning off a corporation like EA because their huge profits are down by an insignificant percentage, is not a call for legitimate sale in my eyes. Standing alone EA will still be here in another 25 years without needing help. They just need to retune their business strategies and not pay themselves huge bonuses because an extra copy of Sims 3 sold in New York state, thus reaching their sales forcast.

 

At the end of the day, many companies would still be alive and kicking in this recession if capitalist greed and no common sense was out-ruled in favour of clear viable business strategy.. But as we've seen, CEOs lining their pockets is more of a concern than the company's and employees survival... Idiocy at its finest!

Edited by Saracen

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Not going to happen.

Though, if it did, Microsoft would be pretty close to having a monopoly on the games market.

Activision-Blizzard for one ensures that wouldn't be the case.

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Activision-Blizzard for one ensures that wouldn't be the case.

True, however, they don't actually need a complete monopoly to get in trouble. Microsoft never achieved a full monopoly, but got sued for it anyway.

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