Tuesday, 21 August 2012

EA Goes A Courtin'?

Certainly shocking, but perhaps not completely unforeseen?

I said that acquisitions would sort of be a theme for the first couple of posts today. While yesterday was talking about how OnLive was definitely acquired, today's post is going to be a little more speculative. Electronic Arts hasn't been the most popular company around lately, and neither has it been the most fruitful being hit along with the rest of the industry with the lull in early quarter spending this year.

These reasons might be why it's rumoured that the company is looking for a buyer to acquire them.

Now, all of this is just speculation at this point, but with the somewhat lacklustre state that EA has been in thus far it's not completely out of bounds to consider that they may be looking for someone to acquire them. It's not really a secret that Activision/Blizzard tried to do the same thing, although their efforts proved fruitless.

The looming question would be why EA is choosing now to potentially search for someone to acquire them. They've just entered into a lawsuit against Zynga, and while it's going to be a drain on their resources, it might also stop potential suitors from really seriously looking at EA until the lawsuit is over. Although EA is the plaintiff, if they lose or the suit comes to a deadlock, then all the money that they dump into it will have been worthless, possibly causing their stock to hemorrhage even more than it currently has.

It's hard to say what would happen if EA were to be acquired by another company. Certainly because they choose to be acquired they'd have a little more control over the terms and circumstances; still, it's not hard to believe that some parts of the company might be hit harder than others. Of course this is just idle chatter, EA's search could prove just as fruitless, if indeed they are searching at all.

Still, even though it's just thoughts in the wind at the moment this could be a huge potential game changer. Like them or loathe them, EA is one of the major players in the game industry, and with them potentially yielding control of the wheel to someone else it could be a huge chance for change ... good or ill.

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