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View Full Version : Rumor: Microsoft Looking At Electronic Arts As Possible Acquisition Target



cdj
01-29-2018, 05:43 PM
We spoke to four analysts who all agreed that Microsoft needs to act soon, and that major acquisitions are by far the most likely route.

“Microsoft recognizes this as an important issue,” said Piers Harding-Rolls, director of research and analysis at IHS. “Hence, Phil Spencer’s comments about investing more in delivering first-party content.”

“Sony’s going to be aggressive at this stage of the hardware cycle,” said SuperData Research CEO Joost van Dreunen. “It gives the impression that Microsoft’s exclusives portfolio is pretty meager. They haven’t had that consistent content agenda like Sony has and so that’s why I think they now come up [a] little short. Some of their titles didn’t perform all that well.”

Microsoft has a cash pot of at least $130 billion, boosted by recent tax cuts that heavily favor large corporations. When you consider that the market capitalization of a company like Electronic Arts is around $35 billion, it looks like a handy war chest.

Some of the names being thrown around as possible acquisitions by Microsoft are, frankly, astounding, even unthinkable. But the fact that they are doing the rounds is instructive. The most recent one we heard (from a reliable source close to Microsoft) was, in fact, Electronic Arts. We also heard a whisper about Valve and about Korean outfit PUBG Corp., which Microsoft last year signed to a timed exclusive for its hit survival shooter, PlayerUnknown’s Battlegrounds.

Courtesy: Polygon (https://www.polygon.com/2018/1/29/16930892/xbox-one-exclusive-games-analysis-microsoft)

Rudy
01-30-2018, 03:47 AM
This scares me. I don’t even care as much about losing sports to the Xbox but the other publishing stuff could hurt too. MS has money to burn.

steelerfan
01-30-2018, 11:32 AM
Sadly, at this point I don't care if sports games go away altogether. I'm out and I don't see anything happening that will get me back.

CLW
01-30-2018, 12:17 PM
MS has ZERO decent exclusives. They have two options #1 make a long term investment into new studios to develop new IP #2 buy someone out.

MS will likely go #2 bc its splashy and quite honestly they dont have the track record of developing a number of quality studios like Sony has.

The more interesting question is would MS want EA's titles to all be "exclusive" (PC XB) or could they not resist selling on the other console like they have with minecraft.

Personally, I'd like MS to buy out EA and hopefully the leagues get rid of exclusivity and Sony can crank out studios that produce better sports sims than EA ever dreamed of (see The Show)