Rumor has it that Korean free-to-play company Nexon has made an offer to buy Electronic Arts. GameSpot has the story.
Quote:
Korean free-to-play game company Nexon (Maple Story, Combat Arms) has reportedly made an offer to purchase FIFA, Battlefield, and Mass Effect publisher Electronic Arts, according to a Bloomberg video report.
The Bloomberg report cites an unnamed South Korean newspaper with the news, and does not elaborate on the potential deal in any way. An EA representative told GameSpot, "Only comment here would be that we don't comment on rumors or speculation about our business."
EA's shares are responding positively to the rumor, as the company's single-share value opened today at $15.76, well ahead of the $15.01 closed at yesterday. As of press time, EA is trading at $15.81 per share.
Last week, a report indicated EA was planning to lay off as many as 1,000 staffers after underwhelming Star Wars: The Old Republic sales and an expensive Battlefield 3 post-launch marketing campaign. EA's fiscal year ended on March 31, and the company will report its full-year fiscal results on May 7.
I personally can't get behind digital distribution and freemium style gaming.
See i am the exact opposite, i have only spend money on f2p and indie games this year. And my gaming budget is just as large as ever. And damn i feel great not throwing money at the likes of EA.
And I just bought some EA stock today since it has sank so low. Only 25% of my Activision holding, but if there is a buyout, I will make some serious cash.
Honestly, I'm surprised Activision has not tried to buy EA. ATVI is way better managed company than EA, with more cash, and they pay a dividend unlike EA. EA can't even figure out how to avoid losses in their 1Q every year, it's pathetic.
Honestly, I'm surprised Activision has not tried to buy EA. ATVI is way better managed company than EA, with more cash, and they pay a dividend unlike EA. EA can't even figure out how to avoid losses in their 1Q every year, it's pathetic.
The once a year, 1-1.5% dividend on a stock that does nothing but bounce between 11.50 and 12.50 really makes ATVI attractive buy. Better than EA? Sure. But you are better off investing in companies with routine 4-5% dividends given the lack of growth on stock price. You are losing money being invested in ATVI.
Full disclosure, I am invested in ATVI and plan to change my position (to sell) right after the announced dividend is paid out.
The once a year, 1-1.5% dividend on a stock that does nothing but bounce between 11.50 and 12.50 really makes ATVI attractive buy. Better than EA? Sure. But you are better off investing in companies with routine 4-5% dividends given the lack of growth on stock price. You are losing money being invested in ATVI.
Full disclosure, I am invested in ATVI and plan to change my position (to sell) right after the announced dividend is paid out.
A good point if it were not for the fact that I am betting on windfall profits due to Skylanders sell outs and Diablo III that will destroy analyst estimates.
A good point if it were not for the fact that I am betting on windfall profits due to Skylanders sell outs and Diablo III that will destroy analyst estimates.
I would not sell if I were you.
I wouldn't hold my breath. MW2 and SC2 were released in the same quarter, sold millions of copies, and the stock didn't move. Cataclysm and Black Ops in the same quarter, again sold millions of copies, stock didn't move. The monetization aspects of D3 could lead to new sources of income, but with the decline in WoW subs, the actual net-income, and thus profit, will break even. Skylanders is certainly making money, but it's impact on overall profits will again be offset by other areas of the company. Then there is the general decline in video game sales altogether due to current economic conditions, which is affecting all game related stocks.
I would not expect ATVI to grow sharply in the short term. Long-term there is potential, but the dreams of analysts saying the stock will jump to 18/19 per share are pipe dreams meant to get you to buy and hold (while they sell).
A good point if it were not for the fact that I am betting on windfall profits due to Skylanders sell outs and Diablo III that will destroy analyst estimates.
I would not sell if I were you.
Is Diablo 3 a sure thing though? We only have to look at Bioware to see there is no such thing nowadays, this always on might bite them in the arse.
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Steam ID: NEDKIL™ Meusli
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