EA soon to be acquired by Disney or Apple? – Gamosaurus

What if EA was bought out by Disney or Apple? This is the crazy rumor circulating this weekend following an analysis by Dylan Byers on Puck (source in English), the specialized journalist evoking numerous sources to confirm his remarks. Indeed, EA has been seeking for months to get closer to a media giant, in order to increase its strike force on the video game market. Thus, as we had anticipated in our article on the acquisition of Activision Blizzard by Microsoft, the sector continues to place itself in a situation of consolidation where the small ones are bought up by the big ones.

EA, looking for a partner to become a giant

It’s no surprise that Electronic Arts, one of the biggest studios in the industry, has been trying for months to consolidate its position. For this, EA has already invested more than 5 billion dollars in the acquisition of several studios, including Codemasters last year. However, these acquisitions are limited by its resources, preventing it from becoming a real colossus in the sector (compared to a group like Tencent for example).

If the consolidation via the purchase of smaller structures has its limits, it is also possible to try another approach: to be redeemed, in whole or in part, by larger than either. This solution is notably the one adopted by Activision Blizzard, which can now count on the resources of Microsoft following its acquisition by the American giant.

Although for the moment, no official announcement has been made on this subject, the CEO of EA Andrew Wilson would have been in advanced discussions with several large groups since 2021 in order to create an Entertainment giant. According to the sources mentioned by Dylan Byers, he would have negotiated with Comcast (the parent company of NBC Universal, the largest pay-TV network in the USA and a media giant throughout the world) but also with Disney and Apple.

Disney in talks to buy EA?

If the attempts with Comcast and Apple do not seem to have succeeded yet (a question of price for the takeover by Comcast according to a source familiar with the matter), Disney would still be in discussion with the CEO of EA. Andrew Wilson, however, seems to have an idea in mind since the latter would like to keep his place as head of the future new set.

Note that for the moment, EA and Disney have enjoyed a partnership for years around the development of games on the Star Wars license. With three new titles in development, this one is more active than ever, although this partnership is no longer an exclusive.

While EA won’t be an easy-to-justify takeover, as the group is doing very well financially, Disney has really grown into a sprawling entity over the past decade, buying up licenses and groups by the shovel (including LucasFilm, 21st Century Fox, or even Marvel and Pixar). The acquisition of an entity like Electronic Arts could open the doors to video games and create, via all its licenses, a real giant in the sector.

Takeover, consolidation or status quo, what future for EA?

If for the moment, Andrew Wilson seems to continue his game of chess with different companies, Electronic Arts is clearly in a very special situation. In fact, the group has been doing very well with very good financial results for several years. Its major historical franchises continue to sell well, starting with FIFA and the Sims, while Apex Legends has been experiencing a revival for a few months (with a peak of active players for more than 18 months if we are to believe Steam Charts). In addition, his takeover of Codemasters seems to be a masterstroke in view of the very rapid growth in the popularity of Formula 1 around the world and in particular in the USA, allowing him to get his hands on the rights to the discipline with F1. 22.

However, some shadows come to position themselves on the trajectory of the group with in particular more and more competition on its sports franchises. If Madden is still a little isolated since the group retains exclusive rights with the NFL, the FIFA section will be undermined by the loss of the FIFA name from the end of summer 2023. Thus, EA Sports FC, the future name of EA’s football game should suffer competition from several titles including a FIFA 24 developed by another studio.

This situation could lead to a drop in the group’s income within two or three years, unless it can successfully transition around the new name of the football game. We therefore understand the Group’s CEO’s desire to seek a more powerful partner.

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EA soon to be acquired by Disney or Apple? – Gamosaurus

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