I don't care about the ActiBlizz acquisition, so there's no "revenge fantasies" on my part. There is however some very good points to why EA would be a great get for Sony.
EA is too expensive an has zero to nothing of value for Sony as a whole corporation.
Great point about EA that i didnt consider is that they license so many of their games that it wouldnt really be worth it to own them.
EA has a market cap of $34.47B. Recent big acquisitions have been paid at a 40-60% premium. Let's say Sony would pay 40%, that's $48.26B.
Sony has a market cap of $106B and obviously only a small portion of it is cash and equivalents. So no, Sony can't buy EA because it's too expensive for them.
In addition to this, they have under $140M for acquisitions, investments and stocks repurchases for this fiscal year and said they don't plan acquisitions for the short term and that pushed back to the mid to long term (maybe once they complete the spinoff and selling of 80% of their banks division, a process that will take 2-3 years).
So they won't buy EA. In addition to this, it would be a finantial suicide for EA or whoever else could by EA to remove the EA games from PS because to make the EA games is very expensive and need the PS revenue and moneyhats, in the same way that also is to remove CoD from PS. In addition to this, EA is in a decade long growing trend and may improve because now without ABK is closer to become again the biggest and most important 3rd party publisher.
Meaning, they can get better deals negotiating with platform holders to ask for a better revenue cut or marketing deals. Which means it will help them grow even more. And all that means that stakeholders even if they'd want to sell know it isn't good time to do it because it's very likely that the value of their stocks will continue growing too, so to sell in a few years for now would give them way more money than to sell now.
TLDR: Sony can't buy EA, Sony said won't make important acquisitions for a while, EA very likely don't want to sell, and if someone would buy EA (something I think won't happen) and doesn't want to commit finantial suicide would keep the EA games on PlayStation.
But there's other ways to either raise cash or buy with "not cash".EA has a market cap of $34.47B. Recent big acquisitions have been paid at a 40-60% premium. Let's say Sony would pay 40%, that's $48.26B.
Sony has a market cap of $106B and obviously only a small portion of it is cash and equivalents. So no, Sony can't buy EA because it's too expensive for them.
In addition to this, they have under $140M for acquisitions, investments and stocks repurchases for this fiscal year and said they don't plan acquisitions for the short term and that pushed back to the mid to long term (maybe once they complete the spinoff and selling of 80% of their banks division, a process that will take 2-3 years).
So they won't buy EA. In addition to this, it would be a finantial suicide for EA or whoever else could by EA to remove the EA games from PS because to make the EA games is very expensive and need the PS revenue and moneyhats, in the same way that also is to remove CoD from PS. In addition to this, EA is in a decade long growing trend and may improve because now without ABK is closer to become again the biggest and most important 3rd party publisher.
Meaning, they can get better deals negotiating with platform holders to ask for a better revenue cut or marketing deals. Which means it will help them grow even more. And all that means that stakeholders even if they'd want to sell know it isn't good time to do it because it's very likely that the value of their stocks will continue growing too, so to sell in a few years for now would give them way more money than to sell now.
TLDR: Sony can't buy EA, Sony said won't make important acquisitions for a while, EA very likely don't want to sell, and if someone would buy EA (something I think won't happen) and doesn't want to commit finantial suicide would keep the EA games on PlayStation.
All IP from Bullfrog, Maxis and Westwood Studios, to name a few.
You mean what Jaffe said?
If this claim is true and it got leaked to public…we can maybe expect him to get fired soon. Because Japanese games are part of PlayStation’s DNA and if he has strong desire to kill this culture, then he needs to go. If he really said something in that way, I can’t think Sony’s Japanese execs will be amused about statements like that. That’s racist.
Hard to believe because under Hermen and Jimbo:
