What does the Electronic Arts merger look like to Apple, Amazon, or D?

Current Wave of integration Electronic Arts has been the focus of attention in the video game industry for the past few months. And given the rumors of a near merger deal, whispers are growing.

EA has been the world’s largest independent publisher of games for years, with enviable intellectual property and a library of legacy licensed brands.But given Take-Two’s stunning price tag, it’s just finished. Zynga Trading ($ 12.7 billion) and Microsoft’s pending acquisition of Activision-Blizzard ($ 69 billion) will limit the market for potential suitors.

Pack newsFriday, the reported EA came recently Close to a merger agreement with ComcastYou saw the CEO Andrew Wilson Run a combination of EA and NBC Universal. Negotiations went on for quite some time, but eventually collapsed due to disagreements over price and structure. EA has also reportedly negotiated with Disney, Apple and Amazon.

As you can imagine, EA hasn’t commented on any rumors. Also, the spokesperson did not answer questions about larger industry integration trends.

But whisper draws EA As a company that reads the environment and finds wisdom in partnership with large companies. And, considering its track record and offering, it seems to have a premium in itself.

But the economy has not benefited from it at all. The threat of recession is a much bigger factor than when Take-Two and Microsoft went shopping and can cause some hesitation if the EA demands huge premiums. Companies are defending their cash as stocks fall, preparing for a sustained reduction in consumer spending.

Who makes the most sense if EA can find a partner? It’s a more limited list than you would expect.

Disney

Disney Soaked toes Enter the waters of video games several times — and it has always dried them pretty quickly. However, there is some debate about acquisitions. The combination of EA Sports and ESPN makes a lot of sense. EA’s PopCap division fits naturally.And concentrate with an in-house team Star Wars The game has a specific logic.

That said, it’s doubtful that Disney will get angry with titles like this: Battlefield, Mass Effect, When Dead Space.. And Disney CEO Bob Chapek has recently been busy increasing Disney + subscribers and managing the fallout of company issues in Florida.

Amazon

Amazon has recently shown a growing interest in the game world. Lost Ark.. Its Twitch division has become an even bigger player in the industry. It is also a cash-rich company. However, given the high likelihood that premium EA is looking for it, it could be out of Amazon’s range. The most common bombardment retailers have ever fired for an acquisition was the acquisition of Whole Foods in 2017, which cost $ 13.7 billion. (Last year’s acquisition of MGM was priced at $ 8.5 billion. The company fits naturally with Prime Video, which has a much larger established user base.)

EA is convenient for Amazon, but it’s not required, so this pairing is unlikely.

Apple

Apple focuses on hardware rather than software.And it’s already from EA (and all other app developers in the video game space) Payment of royalties From in-app purchases and downloads. When you buy an EA, a department that is different from the way you do business puts a strain on your company.

This is a nonsensical combination.

Sony

Sony is already full Bungee merger.. Both companies have been partners for many years and are familiar with each other, but Sony’s reliance on cross-platform business models can be difficult for Sony to swallow. The small number of Bungie games available on Xbox is one thing. Having a catalog as major as EA is a whole different thing. There is also the issue of culture shock. EA and Sony operate their businesses in so different ways that I don’t think they are functioning as a single company.

Ubisoft

Undoubtedly, the idea that the two most popular independent publishers will be merged into one super publisher is interesting. The combined IP catalog will be powerful. And the two have talked about team-ups in the past ( Ubisoft categorically rejected it in 2004). However, EA is likely to be an acquirer and shareholders may dislike it, so you need to be careful about your finances as you will spend money instead of bringing in EA. And we need to explain to investors that the integrated entity can be in the same position as the Microsoft / Activision integration. It can be difficult.

Embracer Group

Embracer has been weeping lately.Recently purchased the right Tomb Raider, Deus Ex, Thief, Square Enix etc. I own several major game studios such as Gearbox and Deep Silver. So it will certainly be a possible partner. However, the logistics behind the acquisition of EA are impressive. The company has numerous departments scattered around the world, and it will take months or years to sort out the redundancy. It’s unlikely to appeal to Embracer’s management.

Microsoft

No. No way.If provided by a regulatory agency This much scrutiny For the Activision acquisition, there’s no way to convince the Xbox parent to approve the EA acquisition.

Comcast

This potential merger doesn’t seem to be progressing at this point, but it really makes sense for EA. With a level of fame that the company can advertise, it has the potential to fill holes in Comcast’s media library, open the door to improving communication between Comcast and console makers, and improve streaming numbers.

Assuming the report is accurate, this deal may be dead now, but as the industry surrounding Comcast and EA continues to evolve (and assumes the ego is out of the way). It seems that two can find some way. Resolve those differences.

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