Microsoft has 'no plans' to purchase EA [update]

by Alexander Sliwinski on Sep 23rd 2009 2:40PM

We have no idea where this meshugaas is coming from, but Reuters is reporting unsubstantiated rumors that Microsoft is interested in purchasing the second place third-party software publisher, Electronic Arts. Shares of EA are up today (around eight percent as of this writing) on the speculative purchase.

Although we've yet to hear from EA, Microsoft was immediate with its response of: "We don't comment on rumors or speculation." If true, the acquisition would be ... um, wow.

Update 2: Microsoft has followed up on its earlier statement, telling Joystiq: "Microsoft has no plans to purchase Electronic Arts."

Update: Wedbush Morgan analyst Michael Pachter spoke to IndustryGamers and thinks the whole idea is rubbish. "[It makes] no sense at all," he says. "One platform exclusives would likely nullify NFL exclusivity, could kill off all sports and other licenses. EA's value on one platform is probably half its value to a multi-platform buyer (such as a media company)." A handful of other analysts weigh in, pouring even more water on the increasingly unlikely fire. We'll bring you more information as we hear it.

[Via The Street; thanks to everyone who sent this in!]

Source

Tags: business, ea, electronic-arts, michael-pachter, microsoft, reuters, rumor

Reader Comments (230)

Wait! JIM CRAMER is against buying their stock! That makes me automatically for it! Hate that fuckin' guy. BUY IT!!!

http://www.thestreet.com/_yahoo/story/10602302/1/tech-rumor-microsoft-eyeing-ea.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

EA's lack of support for the Dreamcast led to that system's early and unfortunate demise, so you can be sure that if Microsoft buys EA, EA won't be putting out any of its annual sports franchises (or much of anything else) on the PS3.

Sony had better hope this rumor is indeed a complete fabrication.

For everyone complaining that EA would have to stay multiplatform, why didn't RARE? Why doesn't Nintendo's Mario and Zelda franchise go multiplatform? Aren't they leaving money on the table? What about God of War? If it sells 3 million on PS3 why not sell it on 360 and DOUBLE the sales.

Exclusivity drives console sales.

I really don't see this going down but if it did, I could see and DS/Iphone/PSP games still being produced without interuption but sports games/Mass Effect/etc becoming 360 exclusive and games like Dead space/burnout/etc being timed exclusives

Nintendo and Zelda are first party titles. Rare used to make games for Nintendo but Nintendo owned the intellectual property of the titles. So, when MS bought Rare they bought the development team not all of their previous works. This doesn't mean every game they did was owned by Nintendo but certainly most of them were and still are controlled by Nintendo. Again, God Of War is an intellectual property owned by Sony and is there to diffirentiate their platform from the other ones.

In terms of multiplatform/EA/Microsoft ... It wouldn't effect titles that are owned by EA without 3rd party liscenses so long as they don't already have multiplatform agreements in place. However, when it comes to liscensed IP's and specific products like Madden (owned by the NFL), NBA Live (liscense owned by the NBA), etc then typically those types of deals revert back to the content owner if the publisher is bought out. So, Microsoft couldn't have Madden 11 be a 360 exclusive because the liscense would revert back to the NFL and any previous agreement would be null and void. Think about it - why would the NFL allow it's exclusive publisher/developer (EA/Tiburon) to only sell it's game on one console? It would completely be only to the advantage of the console manufacturer and not peopke who owned a DS, Wii, PSP, PS2, PC or PS3.

There have been instances with sports titles where a company (like Sony, MS, Nintendo) can make a platform exclusive version of an annual sports title. A good example of this would be how Sony makes MLB The Show even though Take2 (2K) has an MLB exclusivity agreement in place for Major League Baseball.

Hope this clears things up.

Games like Army of Two, Dead Space, Need For Speed, Boom Blox and whatever else EA sports produces that it owns itself could be made 360 exclusive if multiplatform agreements weren't already in place prior to the takeover.

Well, EA has the exclusivity until what, 2012? I'd think the NFL would HAVE to let MS do whatever they wanted with it unless there was something in the contract that dictated the games had to be made for all 3 major consoles. That said, I'd love a new NFL2kx game.

There always is something in the contract when it comes to any liscensed games. Thats why THQ is having trouble finding a purchaser even though they have had games that performed very well recently. Most of their content is liscensed and those liscnesee rights default upon a takeover. Bet your ass the NFL, NBA, NHL etc wouldn't let their games become console exclusives.

I never really supported EA anyway. When they were ready to screw every PS3 owner who was a fan of COD a month ago that the was the nail in the coffin.

That was Activision, my friend. Call of Doody is an Activision product.

What was that about anyway? I got some messages on PSN about an Activision boycott for CoD MW 2, but I didn't know what exactly happened. No map packs for dlc on PS3 or something like that?

I think the word you were looking for was "mishegas".

"I've been on here nonstop. I don't post because I've got better things to do"

So, if you are on here nonstop, how do you have time for better things?

This is some funny shit!

If microsoft does take over. I think there chance for them to be slapped down with monopoly from the goverment. That would just be to much control over market that still recovering.

I hacked sprinkles facebook page and found this pic of him: http://photos-g.ak.facebook.com/photos-ak-sf2p/v239/184/72/503490909/n503490909_770382_8110.jpg

THE RUMOUR'S FALSE GUYS STOP WORRYING/LAUGHING

http://blog.seattlepi.com/microsoft/archives/180058.asp?from=blog_last3

"Microsoft spokesman David Dennis dispelled the rumor.

"There is no truth to this rumor," he said in an e-mail to seattlepi.com, "we have no plans to purchase EA."

You can hate me all you like but you worship the principal!

Mmmm,
Wouldn't it be easier for MS to buy some other big western company.
Like Rockstar for example.
I think it will be cheaper and I can't think of any EA title that can compete with GTA. Plus, I think they are in good terms because of all the exclusive GTA episodes.

Even Bethisda and 2K might do the trick. I think EA is just too big to be sold.

I'm shocked. I do expect Microsoft to buy up smaller companies like THQ, but not Electronic Arts. So far, EA looks worth to be about $6 billion. I can't think of many companies that can afford that kind of investment right now outside Microsoft.

trust on this DoJ will not step in they have more better things too do like killikng all Obama haters that are still living

Sprinkles

Your feeble attempts to extinguish me don't bother me none ...
Like retarded kids throwing ice cubes at the sun.
My methaphors are dirty like herpes but harder to catch
like an escaped tunnel in prison I started from scratch

lil feeble weak ass frale bunny petting you know what ...

MS just really misses Peter Moore and are willing to purchase an entire company to get him back

The question is, does Peter Moore miss Microsoft?

Well, if Michael freaking Pachter says it's false, it must be false.

Case closed.

This would be ironic if this were to take place. Some of you younger gamers may not realize or remember that Sony essentially killed off the dreamcast by making a deal with EA to keep all of their titles off of that system. And ultimately the lack of madden on the dc is what lead to its premature death and the eventual conquest of the ps and ps2. It doesn't matter what any fanboy says, not having madden on your system is a huge blow and if MS were to somehow make a deal to prevent EA titles from being released on the ps3 it would kill off that system as a games machine. Also think about this. Not too long ago EA's ceo mentioned that he wanted a one console race. And if money is your sole motivation having only one console would make sense. You can charge a higher premium for content and you can release games that are inferior quality and since there's nothing to compete with it or compare it to the consumer doesn't know any better so they go out and buy it anyway.

Sounds like EA's been taking too much advice from Trip Hawkins. Ask him how well his 'one console standard' worked out.

Seriously, EA, just make software. Don't waste money you don't have on making 'planz'.

not gonna happen
for one, why would a successful company allow themselves to be taken over?
its just a rumor like Wii being able to play Crysis.

So maybe the wording is wrong, it should be changed to Acquisition. As why would a company that is doing well allow it self to be aquired. maybe for the same reason Marvel comics did .it's about the money & happy shareholders .

Microsoft is a software company. I'm sure they'd love to power the operating system for Sony's PS3. seriously. get out of the hardware business, which is more difficult to make money off of, and power the "platform" from the software perspective, much as they do with Windows. this would be a fantastic way for them to realize that dream. Sony clearly isn't getting it with the software portion; perhaps they would be happy to produce the hardware (arguably the PS3 is a better system, if more powerful = better.)

That would be a great idea wish it could happen

I hate everything that has to do with EA titles becoming exclusive to 360, I wish Microsoft wasn't such a dick.

Previous 50 Comments

Microsoft has 'no plans' to purchase EA [update]

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