EA is ripe for a takeover

[Ghost-Ryder]

Skepticism is pretty much the hat we need to don here, as we learn (http://news.softpedia.com/news/Analyst-Says-Electronic-Arts-Is-Ripe-for-a-Takeover-112810.shtml) that some analyst believe that EA is perfect for a takeover. The number crunchers over at Cowen Research believe that thanks to the company's "under performing" sales in the last quarter EA's devalued stock is about ready to get gobbled up. In fact they think that EA's management is not up to snuff at all. "We believe that following serial earnings disappointments, Electronic Arts now deserves a lower valuation premium than the company has historically enjoyed. Since management first laid out its initial full year 2010 guidance and full year 2011 long-term guidance in February 2008, the company has failed to deliver on its earnings targets and has been forced to repeatedly revise down its guidance. Given this historical record, we do not think investors should place too much faith in management's current guidance," the report said.

Now I'm not analyst, but didn't EA take a bunch of major risks with new IPs that should pay them back down the road? And wasn't 2008 the year the economy crashed and almost every company failed to meet up to their standards (except Activsion, whore that they are)? I haven't read the whole report but it seems a bit like they looked at the numbers on the page and not the company itself. However, if their analysis is true then look for Disney or Warner Brotthers, both of whom already have their own game development companies, to be likely buyers.
Source (http://www.destructoid.com/ea-is-ripe-for-a-takeover--133995.phtml)

[fieyr2002]

I think this would have ended up happening...economy crashing or not.

[Misnomer]

"failed to deliver on its earnings targets"

That says it all. Imagine Lebron James walking onto a basketball court and telling you he is going to make 5 baskets in a row. He makes 3. The 4th bounces off the rim and the 5th gets a weird bounce.

Well quite obviously Lebron James is a crappy basketball player. He told you he would do something and failed to do it. Of course in this scenario, the basket would also have to be half falling down or tilted because of the recession.

These analysts don't say that EA is going to fail because they made poor products, didn't support their products, or got mired in DRM. No, it is because they did not grow and profit as much as they had previously. It is all about proving to the investors that you will grow, buy studios, and find new ways to "monetize" your customers. You can hear the investors now whining, EA.... why don't you have super successful subscription games like WOW?

Maybe instead of blaming EA for being evil bastards who are driving PC games into the dust with their greed, we should blame the investors who demand that EA be more evil to satisfy their own greed.

I'm talking to you EA stock holders.........you killed MOH.

[The_Humungus]

Hopefully Obama will take it over too, and drive it further into the ground. EA can suck it for all I care.... (I still remember MOH Airborne you EA cretins.....)

[TRTL]

Hopefully Obama will take it over too, and drive it further into the ground. EA can suck it for all I care.... (I still remember MOH Airborne you EA cretins.....)

haha.. Nice post.:D