Disney Might Buy EA, Says Wall Street Journal

[MrKLM]

Rumors are floating around the internet that Disney might have its eyes on Electronic Arts.

Electronic Arts, which pursued GTA publisher Take-Two Interactive for much of 2008, may now be an acquisition target of Disney.

According to financial website The Motley Fool, the Wall Street Journal's Heard on the Street column suggested yesterday that Disney might be eyeing EA. The WSJ apparently based their speculation on comments made by Disney's Chief Financial Officer during a conference call on Tuesday. From the Fool:

Asked if Disney's focus would be on developing in-house games over buying more developers, [CFO Tom] Staggs responded, "I don't want you to conclude that those are in the long term mutually exclusive." He went on to say that a "strategic and attractive" purchase would be "a possibility" for the family entertainment giant.

Did he say Electronic Arts (Nasdaq: ERTS)? No. However, a combination of EA's battered share price and Disney's desire to ramp up its gaming presence dovetail nicely in the rumor mill.

The Motley Fool offers five reasons why a Disney takeover of EA makes sense:

* Disney has acquired game companies before (Avalanche Studios, Club Penguin)
* EA Sports and Disney's ESPN would have synergy
* Disney's MMOs haven't worked out so far, but EA has Warhammer
* Racing is a major theme is Disney's films and parks; EA has Need For Speed
* Convergence of Disney's theme parks with EA's strong IP

Still, The Motley Fool views the chances of a Disney-EA deal as slim. And, it's pretty clear that, when it talks about acquisitions, family-friendly Disney isn't thinking of Take-Two and GTA.

While this sounds rather impossible anything can happen. Read the whole story at gamepolitics.

[Obsidian Spire]

Re: Disney Might Buy EA, Says Wall Street Journal

NO, I hate Disney and combining it with EA would equal a mega conglomerate of videogame and animation monopoly. God damn, please stay separated for the good of everyone!

[MrKLM]

Re: Disney Might Buy EA, Says Wall Street Journal

I highly doubt it will happen and really hope that it doesn't. While Disney can put out good games they don't have the same outlook.

[imported_Whiskey]

Re: Disney Might Buy EA, Says Wall Street Journal

This would be very ironic if it happened. Several yrs ago, when finances were good, EA actually made half-joking statements about buying Disney. Quite the turnaround if it went the other way.

[Idaeus]

Re: Disney Might Buy EA, Says Wall Street Journal

I'm afraid disney could kill a lot of studios who make more adult games, such as GTA. I would love a GTA ride in Disney Land though!

[teetsaar123]

Re: Disney Might Buy EA, Says Wall Street Journal

In normal world EA buys other companies but in Soviet America other companies buy EA!

[Polka]

Re: Disney Might Buy EA, Says Wall Street Journal

I lol'd!

[Waatrope]

Re: Disney Might Buy EA, Says Wall Street Journal

Disney presents: Dead space!

[AllFoamNoBeer]

Re: Disney Might Buy EA, Says Wall Street Journal

Corporate ventures are interesting, specially during such an economic period.

[TheEn|gma]

Re: Disney Might Buy EA, Says Wall Street Journal

Corporate ventures are interesting, specially during such an economic period.

Agreed although such a massive buy-out would endanger both companies surely?

[AllFoamNoBeer]

Re: Disney Might Buy EA, Says Wall Street Journal

Depends, mostly on market forces and Disney's plan, the are most likey buying EA out to spread out their debts, a somewhat smart thing to do as the Federal Govt. will then give a financial plan for two companies instead of one (more money given to DisneyEA).

But then, they will need to spend it well, which will be hard as consumerism could dwindle for a few years.

[FPS[SONIC]]

Re: Disney Might Buy EA, Says Wall Street Journal

This isn't news... it's pure speculation without substance.