News Profit's Takes

Is EA Looking To Merge With Another Company?

Did you guys know that EA is looking to merge with another company? Based on a recent report from Puck, Electronic Arts recently attempted to merge with NBCUniversal. On top of that, the same report said that the world-famous gaming giant had also held potential acquisition talks with other major tech companies like Disney and Apple.

According to the report, the proposed NBCUniversal deal was the one that gained the most traction. However, these talks eventually tapered off and fell apart after the two sides were not able to agree on a fair price for the merger.

Even though a deal has not yet come to fruition, Kotaku is saying that EA doesn’t plan on giving up on an acquisition anytime soon.

Puck’s Dylan Beyers did a great job of breaking down the ongoing situation over at EA.

“Several sources familiar with these talks say EA has been persistent in pursuing a sale and has only grown more emboldened in the wake of the Microsoft-Activision deal,” he wrote. “Others say that EA is primarily interested in a merger arrangement that would allow Wilson to remain as chief executive of the combined company.”

For those of you that may not know, Beyers is referring to EA’s CEO Andrew Wilson. He has served as the head of the company since September of 2013.

The Profit‘s Take:

While Disney needs gaming assets the most, it won’t be easy for them to absorb a company like EA given the relative sizes of both parties. This is not as straightforward as Microsoft buying Activision-Blizzard. Microsoft is a $2 trillion company! It’s going to be exciting to see where EA ends up. Apple seems like the only company sizable enough to make this acquisition happen successfully. They’ve got the hardware platform, game service, and distribution mechanism to make this work spectacularly well. And, more importantly, they can afford EA. However, it’s highly unlikely any of the merger candidates being discussed here would let Andrew Wilson stay on as CEO of the resulting company.

(All information was provided by Kotaku, MobileSyrup, and Wikipedia)

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