EA Is Looking To Sell Or Merge The Company, According To Report

[killamch89]

I saw this one about a month back but was surprised no one even mentioned it so I thought this would make a great article. First and foremost, let me just say that I'm not surprised at all that they have got to the stage where they're losing so much revenue that they had to consider selling. I was just surprised it even took this long - after a decade or more of terrible decisions, it's really started to affect them and I couldn't be happier. A report states that they have approached Amazon, Facebook and a couple of other huge companies to try and negotiate the sale or merger of EA. One of the stipulations they had was that the current CEO remains in charge of EA and they get to work independently (because EA knows how to make great games and totally won't screw it up).

I'm not sure if this was an April Fools joke (it'd be like EA to totally miss the deadline by months) because the terms sound unreasonable. What do you guys think of this whole saga? Also, who would you like to buy EA?

[Withywarlock]

It's interesting but not unsurprising Amazon and Facebook have met with them given they'll likely want the methods that work for monetisation. Electronic Arts have never been leaders in bad practices, only the ones to take what works for them and roll with it.

In terms of game companies, I see the following as likely:

• Microsoft. I've said previously that Sony wants talent and Microsoft wants intellectual properties. EA has intellectual properties, and I doubt the talent will stay come the merger (see Bungie breaking out of Microsoft to make their own projects with Activision, and then being bought by Sony).
• Take 2 Interactive. One of the three biggest publishers, likely to be the last with the way the feeding frenzy is going, T2I probably wants them for their monetisation methods and audience retention models. If they can take properties like Need for Speed and Battlefield, they'll have plenty of games between their blockbusters such as Grand Theft Auto and Red Dead Redemption.
• Tencent. The biggest publisher in the world, most prominent in the East, Tencent could well gobble up EA to help get a more firm grasp in the West. It would make sense for them to buy up the company easily, but for what purposes I couldn't begin to predict besides furthering their usual work.

[killamch89]

On 6/18/2022 at 2:41 AM, Withywarlock said:

It's interesting but not unsurprising Amazon and Facebook have met with them given they'll likely want the methods that work for monetisation. Electronic Arts have never been leaders in bad practices, only the ones to take what works for them and roll with it.

In terms of game companies, I see the following as likely:

• Microsoft. I've said previously that Sony wants talent and Microsoft wants intellectual properties. EA has intellectual properties, and I doubt the talent will stay come the merger (see Bungie breaking out of Microsoft to make their own projects with Activision, and then being bought by Sony).
• Take 2 Interactive. One of the three biggest publishers, likely to be the last with the way the feeding frenzy is going, T2I probably wants them for their monetisation methods and audience retention models. If they can take properties like Need for Speed and Battlefield, they'll have plenty of games between their blockbusters such as Grand Theft Auto and Red Dead Redemption.
• Tencent. The biggest publisher in the world, most prominent in the East, Tencent could well gobble up EA to help get a more firm grasp in the West. It would make sense for them to buy up the company easily, but for what purposes I couldn't begin to predict besides furthering their usual work.

I do think Take 2 and Microsoft could very well be in the running for EA but considering the conditions of the merger, I can see why most companies would hesitate to agree to such ridiculous terms.

[Withywarlock]

10 hours ago, killamch89 said:

I do think Take 2 and Microsoft could very well be in the running for EA but considering the conditions of the merger, I can see why most companies would hesitate to agree to such ridiculous terms.

Indeed. They're either seeing what reactions they get or they need to change their terms. And I appreciate them wanting independence, otherwise they're just another company that gets absorbed, forgotten and faceless like their development studios. The reality's different, however: there's other companies which are out there that are better and will surrender so much more for so much less. EA vastly overestimates their market value, especially now they've lost the FIFA license and Disney exclusivity.

If anyone ever struggled with the phrase 'wanting one's cake and eating it too,' this is a prime example. Electronic Arts' CEO wants the acquisition money for changing absolutely nothing.

[Empire]

Always happy to hear the gaming news bro, you're doing a great job bud. My overall opinion on the EA selling/merging is mainly reliant on whether we the gamers even recognize EA as a gaming company presently. Surely the stockbrokers/holders always foresee that if a company doesn't have "their audience" in mind than ultimately the future of that company may be in a different industry

But if that SOB andrew wilson insists on staying on than nothing will change really. Just hope that whoever the winning bidder is, they will get rid of wilson & clean house at ea & restore some luster to all those gaming IPs owned by ea.

[Justin11]

If this news is true the way it sounds, it could've escalated more than this, many users in the gaming industry could've talked about it. Maybe the news isn't all that authentic nor reviewed, we'll get to see the outcome soon. Any company willing to merge with EA should go on, it will be one hell of a shrewd investment when it is reached. 

[killamch89]

On 6/23/2022 at 1:39 AM, Withywarlock said:

Indeed. They're either seeing what reactions they get or they need to change their terms. And I appreciate them wanting independence, otherwise they're just another company that gets absorbed, forgotten and faceless like their development studios. The reality's different, however: there's other companies which are out there that are better and will surrender so much more for so much less. EA vastly overestimates their market value, especially now they've lost the FIFA license and Disney exclusivity.

If anyone ever struggled with the phrase 'wanting one's cake and eating it too,' this is a prime example. Electronic Arts' CEO wants the acquisition money for changing absolutely nothing.

Exactly my point - EA might have a lot of great IPs but the only half decent games we can remember from them in the past 5 years is Need For Speed: Heat, Star Wars Fallen Order, Star Wars Squadrons and Battlefield 1. After the subsequent failures Battlefield V and 2042, most Battlefield fans are sticking to the older games. Anyone who takes on EA has a lot to do to restore public confidence.

[Heatman]

On 6/25/2022 at 3:20 AM, killamch89 said:

Exactly my point - EA might have a lot of great IPs but the only half decent games we can remember from them in the past 5 years is Need For Speed: Heat, Star Wars Fallen Order, Star Wars Squadrons and Battlefield 1. After the subsequent failures Battlefield V and 2042, most Battlefield fans are sticking to the older games. Anyone who takes on EA has a lot to do to restore public confidence.

You're right about them screwing up so bad with their releases in Battlefield V and 2042. I'm very sure that's going to be the last franchise of the game that I'm going to play in respect to any new release of the game unless something better is released. 

I'm sure EA will never sell the company and with what they are proposing in a merger, it's definitely not going to work for any company that have good business interest for themselves.