Pachter to EA: Buy Ubi or Get Out

By Chris Remo, Dec 14, 2006 2:30pm PST Noted Wedbush Morgan industry analyst Michael Pachter has announced to investors that Wedbush Morgan has begun in-depth coverage of Ubisoft, along with its continuing coverage of other major game publishers such as Electronic Arts, Activision, and THQ. Based on Ubisoft's heavy early investment in development for the new current-gen platforms and strong brands, Pachter puts Ubisoft stock at "buy" status, despite the company's recent losses.

One particularly interesting aspect of the investor note comes when Pachter addresses EA's 2004 purchase of a 20% stake in Ubisoft. Seeing little point in EA keeping its minority shareholder position without taking further action, Pachter recommends EA either complete the acquisition of the company, or sell off its stock. "In our view, EA shareholders can decide individually whether an investment in Ubisoft is prudent (and of course, we think it is)," he wrote. "We therefore believe that EA should either complete its acquisition of Ubisoft or divest of its minority interest. With approximately $2.4 billion in cash, EA could complete its acquisition of Ubisoft at any time."

Last year, Ubisoft CEO Yves Guillemote admitted that if EA is committed to acquiring Ubisoft, the French publisher would have little recourse. "We are not safe from a hostile action from Electronic Arts," he said.

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17 Threads | 53 Comments

  • Oh who gives a shit. Ubisoft has been falling downhill for a long time now. Their customer service is down right shit to the point where they told me Beyond Good & Evil was "too old" to be supported (2003 for pc!!!) and admitted my problems with XIII not starting and Pandora Tomorrow's crashes were unfixable and "unfortunate".

    Then recently with Dark Messiah and Double Agent. They have bugs out the wazoo and it took ubisoft weeks before they even took notice. How DA PC got out the door is beyond me.

    Then we have Red Steel. They ignored gamers remarks about the Wii-mote control issues, and many reports claim the game is just plain rushed.

    So you know what? Buy em out EA. Maybe you can put some money into them and make them spend more time on their games instead of just rushing them out. EAgames may be uncreative in many aspects and a bully, but at least when I start Tiger Woods 2005 or NFS:MW they don't have any problems. More than what I can say for ANY ubisoft game I've purchased.

    Good riddens.