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Author Topic: EA Possibly Selling?  (Read 13334 times)

Catastrophic lolcats

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EA Possibly Selling?
« on: August 17, 2012, 02:37:53 pm »

So there are rumours going around the internet saying that EA is looking to sell their company. It seems to be around 20 USD for stock at the moment. Now personally I don't see this rumour as being all that strong since it appears to me EA is going decently(not that it should, the bastards) and if anything they should be rolling in profits. I'm sure their EA Sports Wing would keep them afloat. There is also the possibility that their just selling off stock and this was overly tabloidised. This rumour is however all over gaming websites.

Thoughts, comments or general EA hate thread. Post what you want
 
http://www.kotaku.com.au/2012/08/is-ea-up-for-sale/
http://www.techradar.com/news/gaming/reports-ea-is-for-sale-1092554
http://www.thesixthaxis.com/2012/08/16/new-york-post-says-ea-might-be-up-for-sale/
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The Fool

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Re: EA Possibly Selling?
« Reply #1 on: August 17, 2012, 02:42:10 pm »

I can understand folding branches of the company, but outright selling is hard to believe. I think someone wants to scare stockholders for some reason or another.
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Bdthemag

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Re: EA Possibly Selling?
« Reply #2 on: August 17, 2012, 02:44:01 pm »

Aren't they at about 13 USD at the moment? They used to be at around 11 USD I believe. The only way they'd end up selling the company, is if the stock dropped below 10 USD. It's been funny though to see them try to recover by saying "Oh, well this is really just us getting ready to transition into digital!" and the whole "EA sides with the LGBT community!" to drum up sales.
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nenjin

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Re: EA Possibly Selling?
« Reply #3 on: August 17, 2012, 02:47:20 pm »

Quote from: Article
...the stunted growth at retail has some investors losing faith.

And those investors don't actually understand the current gaming space and where it's going. Arguing that EA is too far behind the ball of digital distribution compared to Steam? A reasonable concern. But anyone who is still looking at retail sales as the primary indicator of success isn't really interested in the future of the company; they're interested in the company as it relates to other businesses like advertising and the health of consoles. Retail stores support several other businesses, including publishing, distribution, manufacturing and advertising. I believe that's where the majority of reticence lies with investors; they're worried about the health of these other industries as it relates to retail stores, industries which have become fat, bloated and lazy over the last two decades. Anyone notice the absurd amount of marketing for Darksiders 2 recently, especially on TV? Think about that and all it entails.

Quote
Aren't they at about 13 USD at the moment?

EA bought back shares of its own company to raise the price. On paper it means the value of stock has risen. In reality, it means the public valuation of the stock has fallen.
« Last Edit: August 17, 2012, 02:49:01 pm by nenjin »
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Eagleon

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Re: EA Possibly Selling?
« Reply #4 on: August 17, 2012, 02:50:44 pm »

I can understand folding branches of the company, but outright selling is hard to believe. I think someone wants to scare stockholders for some reason or another.
What's there to scare? It's the same as any other big company changing hands - not much in its organization would be changed, beyond whatever the new holder wants. EA will continue to make money churning out retrodden ideas from their many, many assimilated studios, with the same stale profit formula TV producers have used for decades. No need for alarm there.
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eeviac

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Re: EA Possibly Selling?
« Reply #5 on: August 17, 2012, 02:53:39 pm »

I have some money saved away, I'll make an offer for their share of the rights to system shock!
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Neonivek

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Re: EA Possibly Selling?
« Reply #6 on: August 17, 2012, 02:57:19 pm »

I can understand folding branches of the company, but outright selling is hard to believe. I think someone wants to scare stockholders for some reason or another.
What's there to scare? It's the same as any other big company changing hands - not much in its organization would be changed, beyond whatever the new holder wants. EA will continue to make money churning out retrodden ideas from their many, many assimilated studios, with the same stale profit formula TV producers have used for decades. No need for alarm there.

Basically EA transforms from the Evil Sorcerer into the Evil Undead Liche
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RedKing

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Re: EA Possibly Selling?
« Reply #7 on: August 17, 2012, 02:57:25 pm »

Well if it was intended to scare investors, it ain't working.

Quote
SAN FRANCISCO (MarketWatch) -- Shares of Electronic Arts Inc. jumped more than 7% to $14 in early trades on Thursday morning on a report that private-equity firms are showing interest in the videogame publisher. According to an article in the New York Post, private-equity firms KKR and Providence Equity have approached EA (US:ea) about "a potential transaction." Providence already owns game publisher Bethesda Softworks. A spokesman for EA said the company does not comment on rumors and speculation. Prior to the report, EA shares had slumped by more than 36% for the year after a strong run-up last year, as the company's high-profile online MMO game "Star Wars: The Old Republic" has failed to grow paying subscribers, along with slumping retail sales across the industry.


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10ebbor10

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Re: EA Possibly Selling?
« Reply #8 on: August 17, 2012, 02:58:08 pm »

If we control a large enough part of the stock, we can try to take over EA. Then we can be the Evil interfering executives.
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Neonivek

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Re: EA Possibly Selling?
« Reply #9 on: August 17, 2012, 02:58:54 pm »

Well if it was intended to scare investors, it ain't working.

Quote
SAN FRANCISCO (MarketWatch) -- Shares of Electronic Arts Inc. jumped more than 7% to $14 in early trades on Thursday morning on a report that private-equity firms are showing interest in the videogame publisher. According to an article in the New York Post, private-equity firms KKR and Providence Equity have approached EA (US:ea) about "a potential transaction." Providence already owns game publisher Bethesda Softworks. A spokesman for EA said the company does not comment on rumors and speculation. Prior to the report, EA shares had slumped by more than 36% for the year after a strong run-up last year, as the company's high-profile online MMO game "Star Wars: The Old Republic" has failed to grow paying subscribers, along with slumping retail sales across the industry.

It could be to do the opposite.

To make investors suddenly start buying shares to drive up the market price.
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nenjin

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Re: EA Possibly Selling?
« Reply #10 on: August 17, 2012, 03:03:10 pm »

Which pitches into the garbage if the deal isn't actually happening. I'd wager that's mostly speculation atm, and EA buying its own stock.
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RedKing

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Re: EA Possibly Selling?
« Reply #11 on: August 17, 2012, 03:06:43 pm »

I think it's more likely that you have a couple of equity firms that see the long-term cash cow potential in game companies and are just looking to buy them to milk for gold (as they're doing with Bethesda, figuring that "hey....Skyrim sold pretty well")

EA's stock dropped significantly in price recently, good time to ride in and buy it for (relatively) cheap.

So it's more the Evil Venture Capitalist Vampires sucking the excess blood out of the Evil Sorcerer.
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Bdthemag

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Re: EA Possibly Selling?
« Reply #12 on: August 17, 2012, 03:10:30 pm »

I doubt anything is really going to change though, either EA survives and continues producing shitty games that make a lot of money, or a company equally as bad as EA takes its place.
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Neonivek

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Re: EA Possibly Selling?
« Reply #13 on: August 17, 2012, 03:12:13 pm »

Quote
So it's more the Evil Venture Capitalist Vampires sucking the excess blood out of the Evil Sorcerer

EA, the essence of evil.
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jocan2003

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Re: EA Possibly Selling?
« Reply #14 on: August 17, 2012, 03:16:04 pm »

FUCK YEAH!!!that rumor made my day, die you evil bastard. Sorry had to let go... been too long ive been waiting for the possibility of seeing a giant fall down his throne.
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