Thursday, April 12, 2012

Corporate- A Smart Purchase- Electronic Arts

Disney should buy Electronic Arts. Why should they do this you're asking? Think about Disney's video game plight (in fact there's a previous post on it). So let's give the bottom line up front: Disney needs help in video games and EA is a MAJOR PLAYER with SOLID FRANCHISES and LOYAL CUSTOMERS. Think about Madden football, NBA Jam, NCAA, FIFA, NHL, Rockband, etc. These are enduring games, not one hit wonders.
  Now look at Disney's current games- Epic Mickey is the biggest one and there are noticeable problems. So lets combine the two. If Disney should spend a significant amount of money anywhere, video games are a worthy place to do so. So lets look at some numbers- EA is a publicly traded stock on NASDAQ and brings in annual revenue of $3.6 Billion.
  EA represents what Disney's video games could be, but the beauty of this is that EA is no longer making the exciting games they once were. EA needs new fresh ideas and blood, Disney needs a known game producer with solid titles, so it's a perfect match. Is the price tag expensive? Yes. Is it worth it? Definitely. Disney can become the originator of great new games and compete with the best studios in the industry.

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