Pachter to EA: Buy Ubi or Get Out

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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.

From The Chatty
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    December 14, 2006 2:35 PM

    What a shame. It's like the walmart of games buying up all the decent smaller companies. EA is such total shit.

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      December 14, 2006 2:51 PM

      Lol ubisoft is not much better... in fact I would go so far as to say Ubisoft has the worst case of sequelitis of all the major publishers. I passed on SC:DA because it felt like a forced sequel to a dying series, and I passed on R6:LV because imho it offers little over previous titles.

      So I see EA buying Ubisoft as the natural progression of shitty company purchasing another shitty company.

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        December 14, 2006 3:34 PM

        at least with Ubi games in general, you're not smacked with, "HEY PLAYA DON'T FORGET UR PLAYING AN UBI GAME" from the load screen to the moment you quit the game.

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        December 14, 2006 4:14 PM

        I bought Splinter Cell:DA *because* it was more of the same. SC 5 is already in progress.

        Dying franchise my butt :p

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          December 14, 2006 4:37 PM

          Dying is a matter of perspective. Its *dead* to me as I no longer find it fun.

          Financially? How many of EA's franchises have *died*, even though they long ago become dinosaurs? Need for Speed anyone?

          Besides with SP:DA where was my spy tactical co-op mode from CT(XBOX 360)? Why was multi so incredibly spastic? How did they manage to make things worse from a previous incarnation?

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            December 14, 2006 4:46 PM

            Beats me man, I don't buy the SC games specifically for the Multiplayer. That's a very small part of it for me.

            I played a lot of multiplayer in SC 2 because it was so new and very original.

            But haven't touched it since. Also helps that I don't have an XBOXLive account anymore.

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        December 14, 2006 7:28 PM

        Well you missed out on great games. R6 has constantly been a great series and vegas kicks ass. SC still is worth lots of love too.

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          December 14, 2006 10:18 PM

          Rainbow Six: LOCKDOWN'd .... that is all.

          Seriously how is the new one anything but a piss poor version of gears of war?

          I played the multiplayer demo and was unimpressed. Sure you have cover, but its not half as smooth as gears.

          I played the single player demo and I thought the AI was a god damn embarrassment. Right at the start of the level when you drop down and run forward to some boxes? 80% of the time the enemies would jump over the barricade behind me right into my fire. Hell one time they shot at me, I shot at them, AND THEN THEY JUMPED OVER THE BARRIER.

          I am not trying to be dick... its your right to purchase their buggy/rushed titles. All ask is realize they have no more innovation/creativity then EA at this point.

          .... "Another title in the Might and Magic Franchise" LMAO

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