Skepticism is pretty much the hat we need to don here, as we learn 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 "underperforming" 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.
Matthew Razak is Destructoid's Associate editor and co-founder of film site
Flixist. He began as community member "cowzilla" and was since sequestered to write brainy features material. He lives in Los Angeles with his beautiful wife.
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Contest:
3:00 PM on 05.30.2009
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Oh, and EA getting taken over is bull.
Wait... did i see something about EA?
eh... It was probably nothing.
EA has some good things going for them this year, like Brutal Legend for example. We'll see what happens, but I call BS on this take-over thing.
Oh, and this I suppose
http://www.gamepolitics.com/2009/05/29/nice-work-if-you-can-get-it-ea039s-riccitiello-moore-earn-big-bucks-bad-year
Don't care about the story.
As for the article, they are just reporting what some analyst said. The fact that the analyst - much like all the rest of them - is talking through a hole in his ass is irrelevant aint it?
Sad, too... could've been a *ahem* beautiful picture.
Pff, analysts...
Also, EA isn't changing or being taken over it's just too big.
and now i have inadvertently made a comment on it myself by commenting on the comments.
KHHAAAANNNNNNNNN
but i digress, analysts are almost always good for nothing. although, being a shameless dirty fanboy, i got kind of giddy at the "Apple wants to buy EA" rumour. but even that would mean thin ice for a lot of important games.
I was just thinking that.
Cue more naked men on the front page please Jim.
Also, that's the worst pic of Sora Aoi I have seen that's not NSFW.
P.S. She is very lovely
We need more articles with header images like this