EA possibly looking for buyer?

[TheBlackOut 7]

Well, this is very interesting news considering the revelation that Gens2 is now going to go free 2 play. I have very mixed feelings about this if it turns out to be true:

 

According to unnamed "sources" speaking with the New York Post, Electronic Arts may be seeking buyers. Both KKR and Providence Private Equity Partners are named in the piece as exploring the purchase, though talks are said to be in the "early days." Providence Equity Partners owns a partial stake in Bethesda parent company Zenimax Media; both PEP and KKR declined to comment on the report.

 

Electronic Arts is a publicly traded company, and its share price is currently just over $14 – according to one NYP source "familiar with the company," EA would "do a deal at $20 a share." EA also declined comment. "We don't comment on rumors and speculation," a rep told us this morning.

 

source: http://www.joystiq.c...ploring-a-sale/

 

If EA does sell, I wonder what they would mean for C&C and others. Maybe more freedom or even a new owner?

[Nmenth 291]

Maybe more freedom or even a new owner?

Doubt it... new owners rarely increase freedom. They buy because they have one goal in mind, making as much money as possible, and if they can make a couple million before their new company chokes and dies in two years, they are fine with that.

 

As money grabbing as EA is, it could be far, far worse.

[TheBlackOut 7]

I'm in agreement, I don't think it'll result in that, however it could be possible that the new owners either see no potential in certain series that EA holds IP control over and sells it. Maybe they would think they could make more money doing that than trying to rejuveniate the series.

 

All speculation of course, especially with the f2p game being in development right now. Who knows, that could maybe get C&C back on the map?

[Johnnyxp64 20]

what about the "rumors" that EA is actually for SALE....?

 

http://www.gamespot.com/news/ea-for-sale-6391937

 

now thats good news, with the current situetion EA should worth nothing, but we need a billioner to buy it and save the CnC fransize among others!

 

any volunteers among us?

[Guest Stevie_K]

Electronic Arts have played a big role in the videogame industry and history and it would not be the first time for EA to see big changes. Although, if bought up, I doubt we as consumers will see much to any change really.

[PurpleGaga27 40]

As of now some of the video game companies' stock are about on average in the $10-15 a share range (including EA, Activision Blizzard, Nintendo and Take-Two Interactive). Konami and few others are ahead of the $20 and over a share in the stock market. EA flunked a lot of the resources this year. Look what happened to their latest epic fail release of Mass Effect 3; the responses were ferocious. Then EA wanted some of the damage money back by filing a lawsuit against Zynga for ripping off a Sims game.

 

A doomsday scenario for EA? Possible.

Edited August 17, 2012 by zocom7

[Doctor Destiny 41]

I doubt this will happen. Sounds more like an unsubstantiated rumor at this point.

[Johnnyxp64 20]

lol it will happen after all

 

http://megagames.com/news/ea-looking-buyer

[TheBlackOut 7]

Yea, I read that article a few days ago as well.. However, just because EA is willing to sell at $20 a share doesn't mean someone will buy it. It's all still very unknown at this point.

 

Though if they do sell I'd be very curious as to who would buy them.

[Saracen 16]

It's not really looking for a buyer as such. What the company is doing though is downsizing it's development infrastructure. Harvard Bonin Jr. (Now working for Sony but has many contacts at EA) made mention of it on Facebook a while back. The company is to continue eliminating a lot of its in-house high cost studios and franchises and look towards cheaper alternatives. These include the opening of the EA 8lb Gorrilla Studio which is focussed entirely on cheap iPhone titles (and Android in the future) and most recently converting well known franchises to free-to-play.

 

It's more an evolution of the company. The bosses have gotten greedy, casual and mobile gaming is gaining ground, and business models have changed with other companies to adapt to the current climate. Because less and less people are buying full price and instead are opting to spend small amounts over a long term. The $60/£40 game is no longer the power-seller in this industry.

 

If there is to be any selling off then it will be in the form of development licenses to 3rd party developers. We've already seen this with the Need for Speed Franchise and a few others that I can't bring from memory at this point.

 

Nevertheless, expect this behaviour to continue. EA's days as a games developer is slowly taking a less involved roll. Instead you're more than likely to see the company as more of a publisher to many 3rd party developers. Eliminating the in-house costs is the key here.