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Apple Rumored for Possible Electronic Arts Takeover; Analyst Calls Rumor 'Retarded'

by Nick Breckon, May 05, 2009 11:59am PDT
Related Topics – Apple, Electronic Arts

Following the hiring of several gaming industry executives, Apple has been rumored to be considering a takeover attempt on Electronic Arts--though one analyst isn't buying it.

Apple recently picked up former Xbox division director of strategy Richard Teversham, along with Bob Drebin, the designer of the Gamecube graphics processor. The hirings have fueled speculation that Apple is looking to make a move into the wider gaming industry, and specifically that it is currently eying Electronic Arts.

But hard-nosed Wedbush Morgan analyst Michael Pachter isn't buying it.

"Sounds retarded to me," said Pachter to Gamasutra.

"Apple could buy Warner Music for around $3 billion, and control 20 percent of all recorded music," he continued. "That makes more sense to their current business model than buying EA for more than twice that, doesn't it?"

"I don't want to start a rumor, but want to point out that Apple doesn't own any entertainment content, so I don't know why they would feel compelled to enter a new business unrelated to their current product slate," he concluded.


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Comments

18 Threads* | 45 Comments
  • #23
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    By: K1Bond007 x
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    I don't see Apple getting into the gaming business, but if they did I would expect them to look more into someone like Valve. Apple is already into music digital distribution and with the whole app store, I think it makes more sense for them to turn to game digital distribution than actual game development. I think it's more likely, however, that Apple would just copy Valve and start their own service from the ground up.

    Wouldn't surprise me if Apple became buds with Nintendo though. Not a takeover. Just a partnership. All of it pretty unlikely though.
    May 05, 2009 1:12pm PDT