EA CEO Responds to Acquisition Rumors: ‘We Can’t Be in a Stronger Position as an Independent Company’ – IGN

With the imminent completion of Microsoft’s acquisition of Activision-Blizzard, EA is on the cusp of taking its place as the largest independent major developer and publisher in the industry. Which of course raised a lot of questions about whether or not it is possible to have the same EA one day.

One such rumor surfaced last May in a Puck report that revealed that EA had contacted Comcast CEO Brian Roberts about a potential acquisition β€” but it collapsed due to disagreements over price and structure.

Although EA has repeatedly declined to comment on “rumours and speculation,” CEO Andrew Wilson answered a question on the topic of acquisitions during today’s first-quarter earnings call, reiterating that he doesn’t think the publisher can “be in a stronger position as a stand-alone company.” “.

Activision Blizzard deal compared to other major acquisitions

“Our goal has always been to take care of our employees, players and shareholders.” β€œIn the event that there is a way for us to do it differently from the way we do it today, I should of course be open to that, but I would like to tell you today that we feel very confident and excited about our future.”

It has truly been a successful quarter for EA, with F1 sales up 22 double digits compared to F1 last year, and net revenue totaling $1.78 billion (up from $1.55 billion year over year) driven largely by live service games – which now account for more of 70% of its business in the last 12 months. And, unlike a number of her colleagues, she doesn’t seem to be overly affected by the delays (or at least not the public-facing heap of delays). In fact, the next three quarters look rather promising between Dead Space, all the usual sports, Super Mega Baseball, and a couple of other unannounced games coming in early 2023.

However, it should be noted that this is the kind of standard statement that nearly every CEO has made regarding acquisitions lately. Ubisoft has said the same, as has Take-Two. Statements like this when faced with acquisition questions are pretty standard, as both prevent a CEO from actually lying if an acquisition is being discussed, but also don’t invite much speculation due to the numerous legal and business reasons that CEOs cannot confirm. Or decline until the deal is nearly done.

Furthermore, companies like EA are constantly discussing acquisitions, both in terms of what they might want to acquire, and whether or not they can be acquired. Conversations occur several times a year; They usually fail because the two sides often cannot fully agree on a deal that works for both.

Will the EA ever be acquired? Possible and possible not. What is certain is that offers will likely continue to be treated with offers of its own as well, and with Activision-Blizzard carving out, EA is in one of the best positions in the industry to either turn down deals or make one very profitable deal.

Rebecca Valentine is a news reporter for IGN. You can find it on Twitter Tweet embed.


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