Rumor Has it: Microsoft may takeover EA

s2meatpuppet

s2meatpuppet

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A rumor on the web indicates that Microsoft might consider acquiring game publisher EA. Currently, this is unsubstantiated as there are no details available, but Microsoft is looking to do something with all that cashflow of theirs, including seeking exclusive games for the Xbox One.

The rumor originates from Polygon, who mentions the acquisition plans in an article covering the lack of exclusive games for the Xbox One. The site makes the claim based on a single source, which Polygon calls 'reliable' and 'close to Microsoft'. Microsoft would also consider Valve and PUBG. Microsoft has 130 billion dollars at hand to spend in available cash flow, the market value of EA is 35 billion dollars.
SuperDataResearch analyst Joost Van Dreunen further told Polygon that he expects more news about an acquisition soon. "Because of where we are in the lifecycle of all these things, I’m expecting to hear Microsoft announce something very, very shortly".

Personally I don’t think Microsoft is going to acquire Electronic Arts, but this rumor is certainly attracting a lot of chatter today. Microsoft last year signed to a timed exclusive for its hit survival shooter, PlayerUnknown’s Battlegrounds.
 
FAKE NEWS! I was told by an unidentified source on the internet and in the White House. JK.:p

Great news for the oligarchs and a monopolistic industry. NEVER PRE-ORDER..........

Maybe we will see a crossover between Halo and Battlefield if this happens.:eek:
 
I personally don't see the board authorizing spending as much or more than any single division in the company makes to purchase a publisher. Im not saying it wouldn't be a good move for them. Hell the $5 a month EA access competes with their $10 a month xbox service as it is.
 
sixer9682 said:
https://wccftech.com/pachter-microsoft-ea-troublesome/
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I don't see how money could be a problem, ofcorse if you look just at that division yes it doesn't make any sense. But it's Bill Gates your talking about, if he want it to happen and he has a opening watch it happen. But he is right on the (licensing reasons) plus this would have hard time to get approved on international transaction due to monopoly reasons.
 
ColdIceShot said:
I don't see how money could be a problem, ofcorse if you look just at that division yes it doesn't make any sense. But it's Bill Gates your talking about, if he want it to happen and he has a opening watch it happen. But he is right on the (licensing reasons) plus this would have hard time to get approved on international transaction due to monopoly reasons.
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It's not Bill Gates. Yes Bill could liquidate something to help if they needed it. He is worth less than $90 Billion at this point. $35 Billion out of his "pocket" would hurt his plans for his foundation. He owns a fairly small share of Microsoft at this point and is only on the board as an Advisor to the current CEO. Most of his money is tied up in investments. He will always be comfortable but not like that.

It's the boards decision. If they decide not to the only actions he could take would have him ousted from the board quicker than Steve Jobs when he tried to replace the CEO of Apple. The board has to decide its a good decision for Microsoft to own and operate such an entity. The shareholders would also need to be happy in the long term.
 
Fuck Michael Pachter. An overpaid douchebag analyst.
 
RainMotorsports said:
It's not Bill Gates. Yes Bill could liquidate something to help if they needed it. He is worth less than $90 Billion at this point. $35 Billion out of his "pocket" would hurt his plans for his foundation. He owns a fairly small share of Microsoft at this point and is only on the board as an Advisor to the current CEO. Most of his money is tied up in investments. He will always be comfortable but not like that.

It's the boards decision. If they decide not to the only actions he could take would have him ousted from the board quicker than Steve Jobs when he tried to replace the CEO of Apple. The board has to decide its a good decision for Microsoft to own and operate such an entity. The shareholders would also need to be happy in the long term.
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I did not know that much details. I guess it's near impossible considering that info but I heard that before with a company called Tyco that got bought by Johnson Controls. Everybody was saying the rumors are false because no one have this liquidity and the interest. A month later you see a giant multi transaction of 30 Billions from Johnson buying Tyco. A giant company was swallow by another giant company and converted them to Johnson. When you eliminate your closest competition you get a interesting monopoly for investors.
 
@ColdIceShot Problem is all we can do is speculate. They can do it if they want to. Bill could be the investor if he really wanted to. If he plans on living long enough he could make his money back assuming everything was successful.

One thing I know will happen is the books go on the table. If EA is in financial trouble in a way their own investors and share holders dont know about. It can bring the price down for Microsoft.

I looked up the Tyco deal. It seems it was a tax haven setup for Johnson Controls. Basically since Tyco was based in Ireland you structure the merger in such a way to move your company out of the US. That was Tyco's game all along and Johnson wanted in on it. Although saving half a billion one year and then less than a quarter the following years does not seem like a hell of a deal. But what do I know lol.
 
Read on ARS just now Microsoft took a 6.3 Billion dollar loss this past quarter. Being attributed to the new tax law Trump signed. Has a lot to do with the foreign side of things. The Tax bill went into effect before the fiscal quarter ended. But they were up in revenue despite that.
 
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Almost every large corporation in the US took a hit in Q4, mainly because Trump allowed a 1 time 15% tax on any foreign liquid assets bought back to the US. Also they were forced to use some deferred tax credits due to the fact Trump got rid of them. The tax bill did great things for businesses.
 
RainMotorsports said:
Read on ARS just now Microsoft took a 6.3 Billion dollar loss this past quarter. Being attributed to the new tax law Trump signed. Has a lot to do with the foreign side of things. The Tax bill went into effect before the fiscal quarter ended. But they were up in revenue despite that.
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manny8083 said:
Almost every large corporation in the US took a hit in Q4, mainly because Trump allowed a 1 time 15% tax on any foreign liquid assets bought back to the US. Also they were forced to use some deferred tax credits due to the fact Trump got rid of them. The tax bill did great things for businesses.
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It's about time and Canada should do the same. But it's bad for a lot of regular shares/stocks and retirement shares especially for those taking their retirement this year and next year.
 
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