Excerpts from a recent CNNMoney article quoting Wedbush Morgan Securities:
Other Beauts:
Entire article at:
http://money.cnn.com/2004/12/14/commentary/game_over/column_gaming/?cnn=yes
If you're keeping score at home, by the way, this makes four major sporting events for which EA Sports holds exclusive licenses. NASCAR, the PGA Tour and FIFA soccer are also under contract with the publisher.
So what about Major League Baseball or the NBA?
Baseball would be a tough license to secure. While it hasn't done anything with it yet, Microsoft last year purchased the rights to the "High Heat Baseball" franchise and would likely fight to keep those relevant. (And Microsoft's about the only company in the gaming space that could engage EA in a bidding war and win.)
Other Beauts:
EA did not announce the terms of the deal, but sources told me the price tag was north of $300 million (though well below the $500 million figure some have suggested).
Assuming that's correct, at least one industry analyst feels EA might have overpaid.
"If they paid more than $200 million, then I seriously question their judgment," said Michael Pachter, an analyst with Wedbush Morgan Securities.
"It was flat out predatory licensing. [EA is] trying to put other people out of business. No matter what, the consumer has fewer choices and no matter what, they're paying more. There is no $20 option. It goes to $50 next year and stays there. I think consumers lose."
Entire article at:
http://money.cnn.com/2004/12/14/commentary/game_over/column_gaming/?cnn=yes