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EA close to acquiring Ubisoft ?

Source: The Mercury News (link )

Redwood City video game maker Electronic Arts rose $4.50, or 8.4 percent, to $58. EA gained from speculation it may buy the 80 percent of French game maker UbiSoft Entertainment it doesn't own, according to Southwest Securities analyst Arvind Bhatia and Pacific Crest Securities analyst Evan Wilson. EA bought 19.9 percent of UbiSoft in December. Wilson rates EA shares ``sector perform'' and Bhatia rates them ``strong buy.'' Neither owns them.

Source: Associated Press (via The Mercury News)

DWIGHT OESTRICHER

Associated Press

NEW YORK - Shares of Electronic Arts Inc. rose 8.4 percent in heavy trading Monday as the stock caught up to the gains of other video-game makers, and rumors spread that it might be close to acquiring Ubisoft Entertainment SA of France.

From the end of April into June, as the video game makers reported earnings for the first three months of the year, the stocks of THQ Inc., Activision Inc., and Take-Two Interactive Software Inc. have made gains, noted Wedbush Morgan Securities analyst Michael Pachter.

Meanwhile, shares of Redwood City, Calif.-based Electronic Arts have stayed about the same, closing at $53.50 Friday from the $53.39 of April 29.

"I would say that what you are seeing today is a narrowing of the valuation gap," Pachter said. "Momentum investors saw that Electronic Arts was lagging and forced it up," and short sellers got squeezed as well.

Shares of Electronic Arts rose $4.50 to close Monday at $58 on volume of 11.4 million, compared with average daily volume of 5.5 million on the Nasdaq Stock Market.

There was also a rumor making the rounds of trading floors that Electronic Arts, which has a 20 percent stake in Ubisoft, might buy the rest of the company. Ubisoft Chief Executive Yves Guillemot said in The Wall Street Journal last month that the company was open to being acquired by a traditional media company. However, he again said he was opposed to Electronic Arts getting a stake in the Ubisoft and that Ubisoft wouldn't be a good combination with Electronic Arts.

"The general feeling is that Ubisoft would be a fairly accretive transaction," said Harris Nesbitt Gerard analyst Edward Williams. "The synergies they would get would contribute" a healthy amount of earnings before interest, taxes, depreciation and amortization.


Neither Harris Nesbitt Gerard or Wedbush Morgan Securities have investment banking relationships with Electronic Arts, and none of the analysts own the stock.

An Electronic Arts spokeswoman said the company doesn't comment on the stock price or rumors about the company.
 
Since they've already been pumping out a new Splinter Cell, Ghost Recon, Prince of Persia and Rainbow Six every year, and plan on continuing to do so, what's the difference who owns them? The only thing to be worried about is they might not be publishing offbeat games (like Lumines, Sprung and Ape Escape Pumped & Primed) in NA anymore. But who knows, maybe they were going to cut that out, anyway.
 
No big deal, really.

They just need to rename some of their upcoming games and franchises:

Prince of Persia 3 --> Prince of Persia 2006
Splinter Cell 4 --> Splinter Cell 2006
Ghost Recon 3 --> Ghost Recon 2006
etc.

The EA way!
 
Anyone else see EA launching their own console by 2011? They are fucking unstoppable, buying talented devs left and right

Kinda scary 0_o
 
Doom_Bringer said:
Anyone else see EA launching their own console by 2011? They are fucking unstoppable, buying talented devs left and right

Kinda scary 0_o

Nyah, why launch your own console and have to deal with the losses associated with R&D production, etc... when you can simply run shit on the software side by simply using your massive leverage of IPs to sweeten any deals you want to?

Anyway I hope EA picks up Ubi just to watch people get pissed... and claim that EA will just have Ubi pushing out sequels each year... until they are reminded Ubi already does that.... as other have said..
 
Doom_Bringer said:
Anyone else see EA launching their own console by 2011? They are fucking unstoppable, buying talented devs left and right

Kinda scary 0_o

they bought talented devs in the past too. but who are they now?

origin = dead
bullfrog = dead
westwood = dead
 
orlando4.jpg

Who is next ?
 
Deku said:
But Ubi's games are just bugged to hell. Maybe EA will bring in better Q&A.

Now this is a clueless statement. The problem more often than most is not the QA. The QA can find bugs but they don't have much power to make it corrected. That's exactly what's happening within big business with tight schedules. We do find the bugs but there's other reasons why they aren't necessarily corrected. We actually find a SHITLOAD more bugs than what will be corrected and we actually find alot more bugs than you'll ever find on your own.
 
ubi soft has become mini-EA

what I would miss though is the few original games ubi actually make..

EA releases only licensed crap or sequels in hip-hop-coating

UBI does that too, but they have som gems..
 
DarienA said:
Anyway I hope EA picks up Ubi just to watch people get pissed... and claim that EA will just have Ubi pushing out sequels each year... until they are reminded Ubi already does that.... as other have said..

:lol Hilarious! :lol
 
I'm sickened of people who are complaining about sequels, when people get the most excited about 3rd, 4th, 5th or 12th iteration of a franchise and those are the ones that sell most. What do you expect publishers to do? They're in this business for making money, nothing else. If people keep buying sequel after sequel, that's what you are gonna get. Looking at this forum, 90% of the games people are most excited about are sequels. Any attempt to make an original game is generally viewed with a great dose of skepticism, both in the media and in the community. The only original franchise that has made any sort of big impact this gen (from a sales point of view) is Halo (and splinter cell too maybe, it has helped ubi get bigger). The best you can hope is to create a great quality original game, and hope that it sells decently and THEN make the big bucks with the sequel (which usually takes less development time as well). Or hype the game years before release, delay it many times so that the game gets as much recognition as possible (i.e. Fable).
 
Sequels are great, but only when they're done right-- with real upgrades and additions and improvements. Some people are fine with tweaks and yearly roster updates or minor story changes, but I'd rather devs take 2-3 years to make sequels right or wait until subsequent generations.

Quality >>>>>> Quantity to me as a gamer, but not to the execs :(
 
thorns said:
I'm sickened of people who are complaining about sequels, when people get the most excited about 3rd, 4th, 5th or 12th iteration of a franchise and those are the ones that sell most. What do you expect publishers to do? They're in this business for making money, nothing else. If people keep buying sequel after sequel, that's what you are gonna get. Looking at this forum, 90% of the games people are most excited about are sequels. Any attempt to make an original game is generally viewed with a great dose of skepticism, both in the media and in the community. The only original franchise that has made any sort of big impact this gen (from a sales point of view) is Halo (and splinter cell too maybe, it has helped ubi get bigger). The best you can hope is to create a great quality original game, and hope that it sells decently and THEN make the big bucks with the sequel (which usually takes less development time as well). Or hype the game years before release, delay it many times so that the game gets as much recognition as possible (i.e. Fable).

A franchise game is not necessarily bad. It's more about direct sequels like 3 Jak, 3 Ratchet, etc. Per example, JakX is ok. It's not a lame sequel but a different game under the Jak franchise. Franchise games don't really hurt, lame sequels do.
 
I'm fine with sequals. In fact, most of the games I get most excited about are sequals. However, I do not like yearly updates (not including sports games). Let's look at Metal Gear Solid for instance. It is one of the best game series out there. Konami takes their time making these games better and it shows. We've had 3 main games in the series over the course of two generations. Also, the two biggest series this gen, GTA and Halo, have had only 3 and 2 games respectively. Now, let's look at Tomb Raider. We had 5 games during the PSOne era each getting worse and worse. We're about to have 4 Splinter Cell games in just this one gen, though I admit I do like these games. Furthermore, we've had 3 Jak, 3 Ratchet, and, now, 3 Sly platform games. We had just ONE Mario platform game all gen. I understand these sequals are selling, but, really, publishers need to give some time away to these franchises so they don't get stale and go the way of Tomb Raider. It would be nice to see some more original games as well. Too bad those don't sell. Two of my fav games this gen were Oddworld: Stranger's Wrath and Psychonauts. As far as I know they have sold really bad. Oh well...

Anyways, to get back on topic, I don't like EA getting even bigger, but Ubisoft was turning into them regardless. Besides, I'm upset at Ubi. With all the IP they own, they could have given PoP or Splinter Cell a break for a year and give me another Rayman or Beyond Good & Evil.
 
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