EA CEO Responds To Acquisition Rumors: ‘We Couldn’t Be in a Stronger Position As a Standalone Company’
With Microsoft’s acquisition of Activision-Blizzard nearing completion, EA is poised to establish itself as the industry’s largest and leading standalone developer and publisher. Of course, many questions have arisen as to whether EA itself could one day be acquired.
One of those rumors occurred last May pack report It was revealed that EA had been approached by Comcast CEO Brian Roberts about a possible acquisition, but it fell apart due to disagreements over pricing and structure.
EA has repeatedly declined to comment on “rumors and speculation,” but CEO Andrew Wilson answered questions about the acquisition on today’s first quarter earnings call, saying the publisher is “in a stronger position as a company.” I don’t think so,” he repeated. An independent company. ”
“Our aim has always been to take care of our employees, players and shareholders,” he continued. “If there is a way to do it differently than we do today, of course we have to embrace it, but today we are very confident and excited about our future. I want to tell you.”
It was certainly a successful quarter for EA, with F1 22 sales up double digits compared to last year’s F1 and overall net revenue of $1.78 billion (up from $1.55 billion year-over-year) became. Over 70% of his business in the last 12 months. And unlike many of its peers, it doesn’t seem to be overly affected by delays (or at least not a pile of published delays). In fact, his next three quarters will be pretty much between a Dead Space remake, an all-regular sports game, Super Mega Baseball, and his two other unannounced games scheduled for early 2023. looks promising.
However, it’s worth noting that this is kind of the boilerplate that nearly all CEOs are doing regarding recent acquisitions. Ubisoft says the same thing, and so does Take-Two. Statements like this when faced with acquisition questions are pretty standard. Because not only does it keep the CEO from actually lying if an acquisition is being discussed, it also doesn’t invite too much speculation given the many legal and business reasons management can’t confirm. Or, decline until the deal is almost closed.
Additionally, companies like EA are constantly talking about acquisitions in terms of what they want and can acquire. Conversations occur several times a year. Most of the time, it usually ends in failure because we can’t fully agree on a deal that works for both parties.
Will EA be acquired one day? Maybe not. What is certain is that while it makes its own offerings, it’s likely that it will continue to be approached with offers, and with Activision-Blizzard’s acquisition, EA will either decline a deal in the industry We are in a great position to cut our business.
Rebekah Valentine is a news reporter for IGN. you can find her on her twitter @duck valentine.
