Insiders suggest they are going to make a bid
Last modified on Friday, 12 December 2008 08:23
Several sources, including the Wall Street Journal, are whispering that none other than Walt Disney might be taking a hard look at making a bid to purchase Electronic Arts. It is understood that Disney wants to get more into the gaming market space and they see a very good long-term possibility for profit in this arena.
While Disney isn’t saying anything, they did leave the door open to the possibility that it might be possible to acquire EA for around $4 billion given their current situation. Still, it is too early to say if the mouse really thinks that a bid for EA would be in the long term best interest for Disney.
A Disney purchase of EA could also help with the marketing of games that perhaps did not do so well under the Disney brand. Recent release Pure from Disney-owned Blackrock Studios was perhaps one of the most underrated games of the year, but much of the problem of the poor sales of the title have been blamed on poor marketing by Disney and a lack of trust in the Disney brand by gamers who did not understand that this was not a typical Disney title.
While Disney might consider making a bid for EA, it is hard to think that EA might not try to fight any such bid for takeover. While EA might be struggling, there are still a lot of positive things that are going well for the company, and franchise titles that will continue to do well. We think EA will get back on track and while the mouse might like to own it, we are not sure how gamers would feel about Disney owning Electronic Arts.