EA Stock at Two-Year High After BioWare/Pandemic Acquisition Announcement
The announcement of the acquisition came near the end of trading yesterday and had little effect on the stock's price. Despite EA paying an unquestionably large sum for both studios, $860 million, the company's investors seem to have spoken, giving the ever-growing mega-publisher their blessing in adding both BioWare and Pandemic to its stable.
The purchase price is apparently a record sum as far as video game acquisitions go, surpassing Microsoft's former record purchase of U.K.-based developer Rare for $375 million. In a conference call proceeding the announcement, EA CFO Warren Jensen said he expects the acquisition to nearly pay for itself by 2010, earning the company an estimated $600 million.
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I don't think EA will die out until publishers no longer make sense for the games' industry (like what the music industry is due to experience in the coming years).
Still, EA could very well change its behaviour in the future. It used to be an underdog, a creatity-nurturing haven afterall.
As a sidenote, my hatred towards the company would diminish tenfold if they made all introductory logos skippable. -
sadly their sports line will probably keep them around
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What would cause that to happen? I don't see EA as being similar to Interplay at all. The company is ridiculously well-diversified and very well run.
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Agreed, Interplay was a nightmare. They got a massive cash infusion when they were unprepared and it destroyed them.
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