Microsoft To Acquire Electronic Arts? Analysts Say No


Will Microsoft (MSFT) acquire video game maker Electronic Arts (ERTS)? The question — the rumour — sent Electronic Arts stock shooting skyward today.

Analysts don’t buy it though.

“Speculation Microsoft would acquire Electronic Arts is ridiculous, just ridiculous,” Janco Partners analyst Mike Hickey told the Wall Street Journal.

“Our contacts just don’t see Microsoft buying Electronic Arts, no synergies whatsoever, and also not Microsoft’s corporate primary focus right now,” Trip Chowdhry, an analyst at Global Equities Research told Reuters.

“[It makes] no sense at all. One platform exclusives would likely nullify NFL exclusivity, could kill off all sports and other licenses.  EA’s value on one platform is probably half its value to a multi-platform buyer (such as a media company),” Wedbush Morgan Securities analyst Michael Pachter told IndustryGamers.

In late August, Analyst Tony Wible of Janney Montgomery Scott said a better fit for EA would be Disney:

Wible: “As more consumers move to video games, we believe it makes strategic and financial sense for DIS to consider buying its way into the vertical to accelerate internal efforts – especially as DIS could cultivate sports league synergies with ESPN, cross licensing opportunities with publishers, and multi-platform advertising benefits while providing a unique competitive advantage that DIS could wield to build barriers around its sports franchise.”

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