The Rumor Wheel is Spinning (Microsoft to buy EA? EA to buy THQ?) - RaychelSnr's Blog

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RaychelSnr's Blog

The Rumor Wheel is Spinning (Microsoft to buy EA? EA to buy THQ?) Stuck

Posted on September 23, 2009 at 03:07 PM.

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With all the chatter out there on video game takeover rumors, all involving EA as a buyer or seller, I think something is going on in the background.

Consider the rumor going around Wall Street which bumped EA's stock up 8% on the 'news' Microsoft is interested in EA. There is also the rumor that EA is interested in buying THQ. As of this writing THQ is up 1% and Microsoft is up 1.3%.

And you thought the buyout rumors were so 2008.

There are several things to factor into the credence of these rumors. First, only EA's stock has gone up substantially on the rumor of Microsoft being interested, but THQ is rising as of this writing. That tells me people consider there are some legs underneath both rumors. Second, the EA/THQ deal seems to be rooted in EA Sports having a lackluster year sales wise and EA wanting to bolster that part of their lineup, which makes sense. However, everyone is having a lackluster year sales wise.

With the video game market slumping and with several companies operating under the assumption we are on the cusp of an economic recovery, which may or may not be accurate, I could see some big moves taking place just because companies will be able to be acquired at bargain level prices. And let's not forget buying EA would be a huge coup for Microsoft as EA games would almost certainly become XBox exclusives (which might or might not void those exclusive licensing agreements).

If nothing else, the rumors are going to get a lot bigger before they go away. Fasten your seatbelts?

Disclosure: I do not hold any positions in either THQ, Microsoft or EA.

Comments

# 1 RayDog253 @ Sep 23

Wow, this is getting crazy. If Microsoft buys EA then, Wo.

# 2 inkpimp007 @ Sep 23

this could mean something really special for EA games on the 360 console.

# 3 thmst30 @ Sep 23

Yes that is just what we need. More exclusivity. If EA turns into an MS console exclusive then I'm done with video games. The NFL, NCAA football, and MLB licenses already suck, and this would take it to the most extreme level. I know it's all rumor and speculation, but just the fact that it's a possibility is complete bull****.

# 4 RaychelSnr @ Sep 23

I agree with ya thmst....it wouldn't be a good thing for us if you could only have, say Madden on a 360. On the plus side though, I seriously doubt the NFL allows for EA to produce an NFL game for just the 360....so Microsoft would either (assuming they bought EA) have to make Madden a multi-console game negating the real advantages they'd get or it'd have to give up exclusivity. That's an interesting problem to have.

# 5 JkA3 @ Sep 23

Very interesting. Well, you can't blame Microsoft for wanting to make that move. And that would be crazy if EA were to purchase THQ.

# 6 statum71 @ Sep 23

XBox exclusives would be REALLY jacked up. It didn't take me but a day to start hating that system.

# 7 DJ @ Sep 23

I hope MS does buy EA and then EA has to give up their exclusive contracts. Sure, Sony and Nintendo fans wouldn't be able to play Madden anymore, but 2k could jump back in the mix, Sony could develop a football title again and some other company could also throw its hat in the ring.

# 8 boxboy99 @ Sep 24

Hmmm, I can see the business thought in both these rumors. 1) EA would buy THQ just for the rights to the UFC game alone. Didn't the UFC game do like 4 million units sold. I could be wrong on the exact number but that is bigger than what Madden sells. Typical EA they wait to take advange of someone else hard work. THQ has had it financial struggles so I can see them taking advantage of this opportunity and cashing out. 2) Microsoft buying EA...... maybe Peter Moore was brought in for a reason. This would obviously be huge for M$.

I really hope EA doesn't get ahold of THQ because it will be an MMA monopoly like Madden. M$ could do some very interesting stuff with EA though good or bad. I would be for M$ buying EA if it mean exclusive deals on Madden and baseball were void, probably not the case.