Possible takeover of EA by Disney

icemann on 5/11/2008 at 02:02

This would be ironic of the best kind if it ever happens. To quote pspupdates.net:

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.

Link:
(http://pspupdates.qj.net/Wall-Street-Journal-Disney-could-buy-EA/pg/49/aid/125820/act/success)

redrain85 on 5/11/2008 at 02:12

God, no. Those two companies together would be the worst possible combination, ever. Even worse than if the EA and Take-Two merger had succeeded.

Disney and EA: both famous for pumping out crap.

The "new, improved" EA is really just the same old wolf in sheep's clothing. They've gotten lucky in coming up with a couple of titles that aren't mindless rehashes (Dead Space and Mirror's Edge). And Disney has put out . . . maybe two decent games - ever - that weren't children's titles.

KoHaN69 on 5/11/2008 at 02:17

EALAND FTW!!!!!!!!

Ostriig on 5/11/2008 at 19:17

:joke:

Quote Posted by redrain85

God, no. Those two companies together would be the worst possible combination, ever. Even worse than if the EA and Take-Two merger had succeeded.

Disney and EA: both famous for pumping out crap.

So what would change? Aside from the fact that it would give the likes of us a hefty cartload of lol, they'd likely be just one... "thing", instead of two, pumping out the same overall amount of crap.

P.S. Actually, there's one thing... it could end up putting Warren Spector and the System Shock franchise in the same (http://www.businesswire.com/portal/site/home/index.jsp?epi-content=NEWS_VIEW_POPUP_TYPE&newsId=20070712006146&ndmHsc=v2*A1181732400000*B1184330595000*DgroupByDate*J2*L1*N1000837*Zjunction%2520point&newsLang=en&beanID=202776713&viewID=news_view_popup) bed. Though I'm curious what such a thought would bring to the pants of the SS fanbase - is it joy or shit?

Morgoth on 5/11/2008 at 20:33

I want an epic Mikey Mouse RPG from Bioware.

Now!

demagogue on 5/11/2008 at 21:12

Just as EA looked like it was starting to turn a corner...

There should be a moral tale in there somewhere. Once you've gone mainstream, it's a pact with the devil and even the slightest waver will see you chomped up by bigger fish, until there's just one, giant, bloated fish left pumping out kitch so insipidly generic that missing a brain becomes a system requirement.

It would be delicious irony though, no doubt.

june gloom on 6/11/2008 at 00:38

Quote Posted by Ostriig

Actually, there's one thing... it could end up putting Warren Spector and the System Shock franchise in the same (http://www.businesswire.com/portal/site/home/index.jsp?epi-content=NEWS_VIEW_POPUP_TYPE&newsId=20070712006146&ndmHsc=v2*A1181732400000*B1184330595000*DgroupByDate*J2*L1*N1000837*Zjunction%2520point&newsLang=en&beanID=202776713&viewID=news_view_popup) bed.

I think I'd rather kill myself than consider this.

EvaUnit02 on 6/11/2008 at 01:20

Quote Posted by Ostriig

:joke:

So what would change? Aside from the fact that it would give the likes of us a hefty cartload of lol, they'd likely be just one... "thing", instead of two, pumping out the same overall amount of crap.

Disney are already pumping EA-esque games, if Turok (2008) and Pure are any indication.

P.S. Take a look at (http://en.wikipedia.org/wiki/Propaganda_Games) this.

Propaganda Games is a video game development studio based in Vancouver, B.C., Canada which was formed in 2005. Owned by Disney Interactive Studios, the interactive division of Buena Vista, the studio was formed by former employees of EA Canada, including Josh Holmes, Howard Donaldson, Jorge Freitas and Daryl Anselmo. Prior to forming the studio, Anselmo and Holmes were co-creators of the NBA Street franchise before teaming up with Freitas to create Def Jam Vendetta.

They acquired the Turok license the same year, which was released for next generation consoles in 2008.

Aja on 6/11/2008 at 06:55

Quote Posted by Morgoth

I want an epic Mikey Mouse RPG from Bioware.

Now!

yeah... i think i do too

jtr7 on 6/11/2008 at 09:36

Sounds goofy.:erg: