Will Apple make a big move? Is EA a takeover target? - RaychelSnr's Blog

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RaychelSnr's Blog

Will Apple make a big move? Is EA a takeover target? Stuck

Posted on November 3, 2010 at 11:44 AM.

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In the "Steve Jobs hinted at something so we must speculate as much as possible" file, several analysts are trying to guess what the Emperor of the Technological realm meant when he said "We have $51 billion in cash laying around," or something like that -- he really said Apple was going to use its money for "strategic opportunities" which is suit speak for "we're about to buy a ton of stuff.".

People instantly began to figure that meant Apple is about to go on a shopping spree to buy companies that will fit within the Apple mold.

And thus, we've arrived at our yearly "someone is about to buy EA" label.

And if Apple really has $51 billion laying around -- and given modern accounting rules there is no reason to doubt that number unless you are a big bank -- this one could have serious legs if Apple is interested.

EA's market cap is around $5 billion, so not only could Apple buy EA -- they could buy EA, Netflix, AND Twitter and STILL have money left in the bank. $51 Billion is a lot of money after all.

What would Apple buying EA actually do for sports gamers?

I'm not really sure of that, you'd definitely see a bigger focus on the Apple platforms (EA is already the #1 publisher in the App Store), so a return of PC (ahem MAC) gaming would be in the offing for sure with the new Mac App Store coming soon.

Otherwise, Apple doesn't fool around with products. Love them or hate them, when Apple does something, they do it well. As a converted and now hardcore Apple user, I see the standards being risen by quite a bit at EA in the presence of an Apple takeover. Good for consumers, bad for developers who will have to really work at another level.

However, as I said at the beginning of the article, there is absolutely zero (and I do mean zero, because Apple wouldn't tell you even if they were planning on buying EA) evidence to support the speculation being thrown around by several outlets over the last week.

But this is a case where the numbers match up so well, I almost think if Apple does expand -- EA is a no-brainer for them.

So join me in the speculation and let me know what you think, are Apple and EA a match made in heaven?

Comments

# 1 RaychelSnr @ Nov 3

Apple could buy EA, 2K, Midway, Activision and every other major game publisher and still have enough money to buy Twitter.

In case any of you guys were wondering how much $51 billion really is

# 2 cbass1 @ Nov 3

@MMChris: Buying EA makes alot of sense not only with the mac app store but also with Apple TV. Clouded gaming i think is the next wave, and Apple could make a big move buy jumping on this opportunity.

PS: Are you guys going to continue OSradio?

# 3 RaychelSnr @ Nov 3

@CBass Yes, we will be doing more OS Radio, just I had a serious illness the first half of last month and then my Dad had a health scare the last half, so my time or ability for doing stuff live was completely nonexistent

# 4 DubTrey1 @ Nov 3

Apple and 2K? More like Apple and 2K, EA and whatever else is up for grabs. They got the $$, so why not. I think it would be a great move for Apple. No need to get in the console biz when you have a mega publisher in house if they had EA.... that would expand Apple's base by even deeper reaches and younger demo's than they already have now. Would def. be a match made in techno heaven.

# 5 scatman @ Nov 4

Maybe I'm just wishful thinking, but I think Apple would do well if it made a console for the next generation; call it iPlay or something. A console for them would bring them into a market you could easily see them dominate within a years time. Apple hasn't stuck it's neck out there and gotten there head cut off yet, a console for them I think would really put them at a monopoly status. Yes PS3 is great, and I guess Xbox 360 is ok as well (don't own one or know anybody who does), but an Apple console with everything Apple has done would really be something to see.

# 6 milesizdead @ Nov 4

Apple and EA might work, maybe games wouldn�t be as unpolished as they are at the moment. Personally I am getting tired of being a beta tester with NHL, MOH etc.
Also Apple designed controllers would be nice...
Outside of gaming, I think Bang & Olufsen would be a good purchase for Apple, both companies design and build items with the consumer in mind.

# 7 russwg1970 @ Nov 4

Not sure Apple would want to acquire a company who has been posting net income losses for several quarters now. Not to mention that the Apple brand is percieved as one of quality (in spite of the IP4 problems) and innovative thinking. By many EA is considered quite the opposite in terms of quality and innovation. The Apple stock (AAPL) has seen a large gains since August 2010. So, in end would adding EA to the Apple brand add value? I certainly don't think so. If anything I see Apple acquiring Facebook, Twitter, or Netflix and possiblly all of them.

# 8 supermanemblem @ Nov 5

i'm not sure ea would be a smart buy. apple is a hardware company built on proprietary software. how in tune with the gaming community can they be? as it stands the vast majority of gaming outside of consols is done on the pc, not apple computers. not to mention the clash in cultures since ea has been around almost as long as apple and at one point was the bigger company. it would be like mcdonald's buying denny's. i see an aol-time warner fiasco if they tried.

now apple joining the console wars would be a much bigger disaster. developers are already pulling their hair out trying to make games for two disparate and competing systems look and play alike. now drop in a third system which would operate completely different from the others and i can see many developers staying away until the apple product had a solid base. the wii has sopped up the casual gamers that an apple product could attract just being an apple. making an iphone game is totally different then an aaa platformer on a gaming console. remember apple didn't get this big pushing computers. 15 years ago, apple had a faint heartbeat. the ipod and iphones put them in this position.

apple has great technologies but they haven't found a way to tie them all together as a cohesive entertainment/communications hub as sony has with the ps3. there is little synergy between the macbook, ipod, iphone, ipad, itunes and applet tv. my guess is apple is going to use this scratch to create more.

# 9 bms715 @ Nov 5

God that would be too good...I wish Apple would do this

# 10 CujoMatty @ Nov 6

Ya I honestly cant see apple buying EA. Not because I think it's a bad move I just really believe that the biggest thing apple has going for them is in how they protect there brand. This is really evident in how much resources they use in trying to prevent jailbreaking the iPhone. Apple wants to protect there products and hold them to a high standard.
I just don't see that kind of mentality being ideal for owning a company such as EA. Honestly if Apple was to buy EA it wouldn't shock me to see the sports franchises by EA eventually dissolve. With such a limited development cycle I'm not sure if Apple would stand by and let sub par efforts get released. I personally love NHL 11, FIFA 11, and even Madden 11, to a lesser extent, but let's remember people all of these have franchises have had bad "patches" and I promise you they all will again. With Apples obsession with control and quality I suspect we would see a few more NBA Elite disasters. maybe it would result in better more polished games. I just highly doubt it with such short development cycles.