Apple Looking to Takeover Electronic Arts?

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TheStreet's David Tong relays that FastMoney's Guy Adami claims that there is "chatter" that Apple is eyeing an Electronic Arts takeover.
Adami noted that there is chatter that Apple (AAPL Quote) is eyeing Electronic Arts(ERTS Quote) as a takeover target.
Kotaku describes Adami's predictions as "sketchy, at best", so it seems quite unlikely there's any truth to it -- but we report it here for interest and discussion.

Article Link: Apple Looking to Takeover Electronic Arts?
 

Luke1robb

macrumors 6502a
May 3, 2008
809
0
Cambridge, MA/Smithfield, RI
This would kind of shine some light on the fact that EA is ALWAYS one of the demos at SDK events. And I mean ALWAYS at demo events, ALWAYS in the featured games, ALWAYS in commercials... you see where I'm going here.

All in all, I don't believe it will happen though.
 

T'hain Esh Kelch

macrumors 603
Aug 5, 2001
5,179
4,744
Denmark
This would kind of shine some light on the fact that EA is ALWAYS one of the demos at SDK events. And I mean ALWAYS at demo events, ALWAYS in the featured games, ALWAYS in commercials... you see where I'm going here.
Probably because they are making million of games, and at least one of them are always an AAA title.

EA certainly doesnt have a reputation for making quality games though. it doesn't make sense for Apple to take them over.
 

addicted44

macrumors 6502a
Jun 6, 2005
532
168
Shorter David Tong

Shorter David Tong:

"I went long on EA and I really need their stock price to go up. Lets link them to Apple!"
 

joeshell383

macrumors 6502a
Sep 18, 2006
792
0
Seems like a good idea. Apple has about $25 billion in cash and marketable securities and no long term debt, and analysts and investors have been waiting for Apple to put it to good use (what better time than in a down, and possibly bottoming out, economy when everything is cheap?). EA is worth about $7 billion, the lowest since late 2000/early 2001 and has about $2.2 billion in cash and marketable securities and no long term debt. If it is assumed (really big assumption, I imagine some Apple stock as all or part of the offer would excite EA's investors) that Apple makes a 100% acquisition in an all-cash transaction, Apple would walk away with a fantastic asset at a great price, even after considering that Apple will have to pay a premium on the current price. Plus, Apple would essentially get $2.2 billion cash back just for buying EA.

An acquisition would solve the Mac gaming crisis and instantly allow Apple to leverage EA's extensive portfolio and exclusive titles across iPhone, iPod Touch, and Apple TV. Instead of being the middleman (as operator of iTunes store) and taking a cut for each unit sold, ALL the profits would go to Apple. Apple would provide downloads instead of optical media which would save it money on printing and packaging and cut out the middlemen retailers who would normally take a cut. Plus, Apple could claim to be environmentally sensitive AND could (even though it would be bad for consumers) limit the resale, rental, and giving/sharing abilities that come with physical products. Even more, Apple could advertise to parents showing how its iTunes ecosystem is one-stop shopping for legal content, with the brand names, content, and titles that children want, all with universal parental controls for games, TV, movies and music available in one place for all devices.

Also, Apple may never be able to make inroads in Mac gaming without an acquisition, and this would give Apple a golden brand name for gaming in its portfolio and protect itself from Microsoft trying to invade Apple's space in the portable gaming and media center realms. If MS pushes XBOX more towards a media center (than it already is), or releases a portable XBOX, Zune capable of games, or an iPhone competitor capable of playing games, it could really hurt Apple right where it is trying to grow. Just like most products, gaming is heavily brand dependent and if Apple ends up stuck only being able to sell "no-name" games for its platforms, the gaming aspect of the iPhone/iPod Touch will be in trouble. If Apple doesn't act now, it could end up costing a lot more later. One more time, IT'S ABOUT THE BRANDS! Madden, NBA Live, NBA Street, Need for Speed, Command & Conquer, The Sims, etc. Even if Apple just rehashed EA's library for Apple TV, iPhone, and iPod Touch, it could do very well! (http://en.wikipedia.org/wiki/List_of_Electronic_Arts_games)

Possibly most importantly, Apple would be staving off a potential partnership, acquisition, or exclusivity deal between EA and MS or Nintendo and help it match or exceed those companies regarding the exclusives that those companies already have.

Finally, not that consumers want this, but by buying EA, Apple could slowly provide fewer quality titles to competing platforms and EA exclusives would eventually only be released for Apple products.

Imagine if EA's sports exclusives (http://en.wikipedia.org/wiki/Ea_sports) were only available on the Mac, iPhone, iPod Touch, and Apple TV... those products would BOOM during holiday sales seasons, especially sales of the likely otherwise doomed Apple TV. It would also make Apple a multimedia powerhouse and provide Apple with a somewhat recurring revenue stream as sports fans buy the latest versions of the popular titles every year.

Buy EA now, the stock will soar on this news.
 

sammich

macrumors 601
Sep 26, 2006
4,289
218
Sarcasmville.
Finally, not that consumers want this, but by buying EA, Apple could slowly provide fewer quality titles to competing platforms and EA exclusives would eventually only be released for Apple products.

Imagine if EA's sports exclusives were only available on the Mac, iPhone, and Apple TV... those products would BOOM during holiday sales seasons, especially sales of the likely otherwise doomed Apple TV. It would also make Apple a multimedia powerhouse and provide Apple with a somewhat recurring revenue stream as sports fan buy the latest version of the popular titles every year.
This would work because Apple has a wide range of computers that would cater to the gaming community...
 

Shookster

macrumors regular
Feb 16, 2009
115
108
This would be a huge purchase for Apple. I sincerely doubt they would buy EA outright - it is far more likely that they would purchase a proportion (say 20%) or invite one of the EA execs onto their board (or vice versa).
 

johnnyjibbs

macrumors 68030
Sep 18, 2003
2,959
119
London, UK
Isn't EA the biggest games publisher there is? This would certainly be a coup for the major third party titles. But what about all the firm's console offerings? They would be seriously limited if restricted to just Mac and iPhone sales.

Or is Apple planning a home gaming device coupling with Apple TV take 3?
 

asphyxiafeeling

macrumors regular
May 31, 2008
199
0
Cali baby!
hahaha this would be awesome

EA, for all their faults and occasional mediocracy (some EA games... man... depressing), are a nice company. (not to mention the biggest game dev ;))

seems unlikely but if it did happen i'd be excited to see what's next!
 

briansolomon

macrumors 6502
Apr 1, 2005
382
0
Murfreesboro, TN
Seriously, Arn?

Posted for "discussion" purposes. Why don't we post a story about Apple buying retail space on the moon and see what kind of discussion comes of it.
 

CarlisleUnited

macrumors 6502
Jan 30, 2007
275
0
Nederland
This would be very good, even if they don't buy the company outright they would be able to put pressure on the company to introduce more titles for the Mac.
 

Pelorus

macrumors regular
Aug 25, 2001
106
0
So, let's pretend it's true.

iTunes becomes a serious competitor to Steam for delivery of games to Mac, Windows, iPhone, iPod touch...

I mean, iTunes is already *everywhere*
 

wheelhot

macrumors 68020
Nov 23, 2007
2,080
249
Nah, I don't think Apple will takeover EA, cause Apple is usually about quality, EA produces lots of games but only a few that you can say is quality.
 
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