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Speculation Grows On Disney Acquiring EA

Posted by Raymond Padilla - Wednesday, January 07, 2009 1:15 PM

With its stock continuing to slump, numerous analysts have claimed that publishing giant Electronic Arts (EA) is there for the taking. Of course, it would take a large company to pull off such a feat. One of the more interesting rumors circulating is that The Wall Disney Company is interested in purchasing EA. Variety's Ben Fritz adds his thoughts to the speculation:

"When you think about it, it makes some sense. Disney has been investing heavily in videogames these past few years. And while its stock is down (31% off its 52-week high), EA stock is way down (67% from its 52-week high), which means buying EA could be a potent way for Disney to jumpstart itself to a lead position in this still relatively fast growing space." 

While I have no idea if Disney will acquire EA, I believe it's only a matter of time before something like this happens. More and more large companies are realizing that gaming can be an extremely profitable form of media. A company like Disney could exploit its movie and music properties much more efficiently with an in-house publisher than relying on external publishers. However, it requires a pretty big committment to make it work properly -- the efforts of Disney Interactive and Warner Bros. Interactive are really just scratching the surface. Snatching up a large publisher with an established history (like EA) would really shake up the industry. EA's current stock price makes the committment more feasible. 

Now, I know a lot of you have beef with EA, but would you think of the company differently if it went to Disney? Would sticking Mickey Mouse ears on EA make it more charming? Or would it just be part of a larger machine to you?

Source




Comment(s)

Posted by sctydsnktnow - Wednesday, January 7, 2009 1:25 PM

i am speechless

Posted by Smartguy81 - Wednesday, January 7, 2009 1:30 PM

@R2P2

I think this is feasible given that Steve Jobs is the majority shareholder of Disney. You hear rumblings that EA will make a console eventually and a few insiders/analysts always tout that Apple will jump back into the market. This could be a good way for this too happen.

Posted by Lanthros - Wednesday, January 7, 2009 1:33 PM

I dont agree with smartguy81 much, but on this I think hes pretty much accurate.

Posted by Tman88 - Wednesday, January 7, 2009 1:33 PM

Disney purchasing EA could be a good thing. Disney could help EA out and Disney has made and published good games in the past, one of the most recent being that Disney was the publisher for the game Pure.

Posted by Jamagh - Wednesday, January 7, 2009 1:34 PM

Why not. Maybe the evil that is Disney, will cancel out the evl that is EA... or maybe they will just form one giant evil thing.

Posted by KingOfOldSkool - Wednesday, January 7, 2009 1:34 PM

This would be a complete disaster.. the last thing the videogame industry needs is Disney higher-ups running another major company into the ground..

Posted by Smartguy81 - Wednesday, January 7, 2009 1:35 PM

@Lanthros

it's cool. i argue and disagree with people on here sometimes just for the hell of it.

Posted by Lanthros - Wednesday, January 7, 2009 1:35 PM

one other thing though as it relates to this in some way. On behalf of my wife and kids, what would this do to the disney/square enix partnership for the Kingdom Hearts series?

Posted by TomHoang - Wednesday, January 7, 2009 1:35 PM

I'm shocked, How do you buy EA?

Posted by pipspoolcleaning3 - Wednesday, January 7, 2009 1:43 PM

Here's my thing. The last thing I wanna see before, lets say, DEAD SPACE starts is a logo with DISNEY and a DISNEY Character represented. It would seriously kill the mood and anticipation. Apply this to other serious, high drama games. It just doesnt work for me. Im sure I would get past it, but every time I turn it on and see it, it would bug the hell outta me.

Posted by Letters2Kay - Wednesday, January 7, 2009 1:44 PM

Now imagine if EA had bought Rockstar, and Disney bought EA. Do you think we'd EVER see another GTA game, then?? I doubt it...

Posted by TheJediRevan - Wednesday, January 7, 2009 1:48 PM

God help us if the evil empire of Disney buys EA...I can hear the Imperial March now as they rez Walt Disney to be the leader of the First Disney Empire.

Posted by Lanthros - Wednesday, January 7, 2009 1:49 PM

lol smartguy81 youve at least allways made a good argument for your case so just like you said lol its cool. Debating is fun untill you get the "nu uh" and "cause I said" trash that just ruins it. Not meaning YOU by you btw :P.

Posted by Postal1111 - Wednesday, January 7, 2009 1:53 PM

OMG! This would seriously frack up the game industry!

With EA being Disney-ified, The most anticipated game of 2011 would be The Smurfs Take Manhattan!!

Posted by Smartguy81 - Wednesday, January 7, 2009 1:55 PM

@pipspoolcleaning3

That is a weak argument. Furthermore the two companies can be under one roof yet be separate entities. Take activision / blizzard for example.

@Letters2Kay
Yes you would. Disney loves the color green.

@Lanthros
Thanks again. I do my best. To be honest, I'd be pretty happy to see EA get bought out. Poetic justice if you ask me. I think it would be good for the industry though. Jobs sits on the board for Disney, and I'm sure he'd give himself a board seat at EA. Jobs has very high standards on quality. That could translate into games.

Posted by Rasmu - Wednesday, January 7, 2009 1:55 PM

@ Lanthros
EA is friends with Square

Posted by Lanthros - Wednesday, January 7, 2009 1:59 PM

rasmu, they may be companies on friendly terms with each other. I dont know. My thoughts are though, why spend all that money licensing when youve got an in house studio? It would be economicly disastarous. As far as thats concerned too EA may have the talent to finish the series but does that talent have the vision disney allready has set out for it?

Posted by DaSaintFan - Wednesday, January 7, 2009 2:05 PM

okay, before everyone forgets... and thinks EA games would be 'kiddified'. Let's not forget that Disney also owns ABC/ESPN, and they're not exactly kiddified networks.

Personally, my first thought was the same that L2K... irony of ironies if EA had gotten take-two/rockstar and then Disney got EA... You're the big fish in the pond until the bigger fish gets you!

Example: Disney owns Propoganda Games, which produced/distributed Turok... UHOH!! Okay, NOW i'm scared, considering how bad that game turned out this year.

Posted by crowdediceb0x - Wednesday, January 7, 2009 2:09 PM

I cant really see anything good coming out of this. I have a hard time believing that Disney would put it's name on M rated games. If EA is hurting so bad maybe they can stop aquiring all these other studios? I don't know...I just don't know how it really helps the game industry to have all these companies turning into one. Disney taking over EA? Really?

Posted by godspeed9 - Wednesday, January 7, 2009 2:14 PM

EA has got a couple really good survival horror titles, and the only thing that worries me is that Disney will clutter up EA with a bunch of hearts and rainbows feel good games. Not that there is anything wrong with family friendly feel good games (little Big Planet), I am just don't want to see any new innovative survival horror titles get scrapped for a Kingdom Hearts card game."

Posted by crowdediceb0x - Wednesday, January 7, 2009 2:16 PM

@ DaSaint

yeah, disney owns abc/espn...but i dunno...ESPN does specials like "one wish" and ESPN the weekend (which is at Disney)...and i dont know...i usually change the channel during those specials because i watch ESPN for sports. you know?

Posted by DaSaintFan - Wednesday, January 7, 2009 2:22 PM

True Crow.. but I was thinking more along the lines of stuff like the E:60 / OUtside the Lines stuff that they added after Disney head-honchos pushed for some edgier journalism on ESPN.

I'm just thinking that IF this takeover goes through (remember the TT takeover was a "sure thing" and then fell through...) that I'm willing to give Disney a chance, (see their Buena Vista games lineup before they changed over to Disney INteractive.)... The turok game for instance has me concerned for their quality assurance, but I don't think "edgier" games would be just thrown away.

Posted by ADAMBOLIAN - Wednesday, January 7, 2009 2:29 PM

PLEASE!!!! DON'T LET THIS HAPPEN!!!!!!!!!!!! I COULD ONLY IMAGINE HOW BAD EA WOULD BECOME IF A CHILDRENS COMPANY TOOK CONTROL OF A SERIOUS GAME COMPANY. GAMES LIKE DEAD SPACE WOULD PROBABLLY DISAPPEAR AND EA WOULD BECOME A KIDS COMPANY, WELL IT MIGHT BE GOOD FOR THE WII!!!!!! THE WII MUST BE TAKEN OUT!!!!!! LETS GO PS3 AND 360!!!!!!

Posted by N8R - Wednesday, January 7, 2009 2:36 PM

This seems complex to me. EA has the rights to alot of film franchises from other film distributors (LOTR, Harry Potter, Superman, etc.). How will THEY react to this in the long and short? If NHL '10 or '11 gets skewed to boost popularity for the Ducks I'll be pissed.

@Lanthros

Smartguy always has great points. I don't think I've argued with him at all yet... but then again... I tend to just not say anything when he starts talkin' politics.

@Smartguy

Still the man!

Posted by gravy666 - Wednesday, January 7, 2009 2:40 PM

Oh dear God, please do not let Disney buy EA. I will complain in all caps if this does not get through.

Posted by r_pad - Wednesday, January 7, 2009 2:43 PM

@Smartguy81 I totally forgot about the Jobs' angle, which is easy to do since he's dying and all. *kidding* Still, if Disney were to acquire EA, I don't see the company getting into the hardware game. Sticking to software would be much safer and certainly very lucrative.

@TomHoang I don't understand what you mean. Disney, or any other company, would buy EA the same way any other publicly traded company is acquired.

Posted by N8R - Wednesday, January 7, 2009 2:49 PM

@ADAMBOLIAN

THIS IS MORE IMPORTANT THAN IT WOULD BE IF I WASN'T USING THE "CAPS LOCK" BUTTON. IN FACT, I HAVE MODDED MY KEYBOARD SO INSTEAD OF SAYING "CAPS LOCK" IT JUST SAYS "MORE IMPORTANT".

Who likes the Shift button anyway?

Posted by crowdediceb0x - Wednesday, January 7, 2009 2:53 PM

hahahaha

Posted by CamperHunter1 - Wednesday, January 7, 2009 3:48 PM

GTA: Toontown ftw

Posted by Smartguy81 - Wednesday, January 7, 2009 3:49 PM

@N8R
LOL

@rpad
Jobs is definitely a hardware guy. The same thoughts you have might have gone through heads when the software giant MS got into the game hardware market. Could be interesting considering Apple already has a digital distribution service in place. I wouldn't bet against it.

Posted by BlackStarNova - Wednesday, January 7, 2009 4:48 PM

wow....that would really suck for EA's employees. They just get out out of the era of the evil empire, and now there's rumors looming about that they might get bought out by anoter evil empire.

Posted by Ivan_PSP - Wednesday, January 7, 2009 6:08 PM

I hope this never happens i hate for Disney to acquired EA i know EA sucks but with Disney owning them it will be chaos pure garbage. Sony should buy EA instead.

Posted by EJ_Texas_Made - Wednesday, January 7, 2009 6:09 PM

Anybody else see the irony in this? A month or two ago EA was trying out a hostile takeover of Take Two (putting Rockstar in their pocket). Now Goofy is threatening to run the company. Great.

Posted by pawelp22 - Wednesday, January 7, 2009 7:41 PM

Steve Jobs has no stake in Disney. Not sure where you guys got that from. Carry on.

Posted by morbo1993 - Wednesday, January 7, 2009 10:54 PM

why do so many people think this will add rainbows and hearts to games like dead space, or think that it will dissapear? Theese games makes huge ammounts of money, kid games, as far as my logic says, doesn't. Even though Disney is considered a kid friendly company its still a company, meaning they feed on profit, if the developer that develops Dead Space keeps on creating good dead space sequels AND it sells, it will probably happen. I hope DICE can keep up the good work ^^

Posted by ThreatTVDotNet - Wednesday, January 7, 2009 11:51 PM

@ pawelp22 -
http://corporate.disney.go.c om/corporate/bios/steve_jobs.h tml

Posted by Smartguy81 - Thursday, January 8, 2009 12:04 AM

pawelp2

He received stock options from the sale of Pixar thus giving him a majority stake in Disney

Posted by ThreatTVDotNet - Thursday, January 8, 2009 12:13 AM

@ pawelp22 -
http://corporate.disney.go.c om/corporate/bios/steve_jobs.h tml

Posted by r_pad - Thursday, January 8, 2009 8:19 AM

@pawelp22 Well, at least you learned something from this story.

Posted by pipspoolcleaning3 - Thursday, January 8, 2009 3:28 PM

@Smartguy81

lol. Well, it wasn't really an argument, but more of an observation. Honestly, I don't know what to think of this article quite yet. But thank you for dignifying my "observation" with a response. I will say it's nice to see someone in a forum strike conversations without acting lame or idiotic. And you do bring up a few good points by the way.

Posted by pipspoolcleaning3 - Thursday, January 8, 2009 3:30 PM

assuming they are correct

Posted by pipspoolcleaning3 - Thursday, January 8, 2009 3:32 PM

assuming they are correct

Posted by poker909 - Friday, January 9, 2009 8:33 AM

This is sadly realistic. It is rumored that Disney has attempted to get in the game business for a while now, and a couple years back when EA acquired the excluseive liscense for the NFL, Disney was rumored to be in the bidding as well.

Posted by stewieXx - Friday, January 9, 2009 11:51 AM

Disney's television network (i.e. ABC) is considered the family friendly alternative to NBC and CBS. You will never see a bare ass or hear the word "crap" on ABC like you have on the other networks. Everything Disney touches turns cutesy, watered down, and sickening.

I think a powerplay move with the current stock price of EA would be for Microsoft or Sony to move in. If either owned the jugernaut that is EA and made everything an exclusive for their system, they will essentially crush their competition.

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