EA Looking To Purchase 2K Sports
Yep, I just got sick too.
In an article about publisher Take-Two and their financial problems, analyst Michael Pachter from Wedbush Morgan Securities has forecast what would be the ultimate death of sports games.
Pachter also evaluated the chances of the company being acquired, broken up and sold in pieces, or being taken over by activist investors. While he described all three scenarios as “unlikely,” he did suggest that the publisher’s currently unprofitable 2K Sports operation might be an acquisition target for its fiercest rival, Electronic Arts. According to Pachter, EA is the most likely buyer for 2K Sports because few others would be willing to go head-to-head with the Madden NFL publisher in the sports genre.
“It is clear to us that Take-Two’s sports business would have tremendous value to EA, as it would give EA a monopoly on football, basketball, baseball, and hockey,” Pachter said. “It is arguable that EA would benefit by as much as $1 billion if it were to obtain an exclusive; this does not mean that it is willing to pay $1 billion.”
Given the few potential suitors who would be interested in going toe-to-toe with EA in the sports genre, Pachter said EA could pick up the division for roughly $200 million. An EA representative declined to comment on the speculation, while a Take-Two spokesperson had not returned GameSpot’s request for comment as of press time.
Related: The Next-Gen Infowar: Electronic Arts / Digg
February 17th, 2007 at 4:48 am
Is EA buying 2k Sports to prevent their non-NFL game from being released? BULLSHIT!!!
February 18th, 2007 at 7:36 pm
Nooooooooooooooooooooooooooooo.
February 18th, 2007 at 8:26 pm
The world is gonna collapse. EA and its monopolies.
February 19th, 2007 at 2:01 pm
I bet its about more than their non-nfl game…I’ve seen rumors that the NFL is unhappy with EA and was gonna open the bidding again after the contract is up in two years. So within 2 years Madden could be competeing against a licensed NFL 2k game. And I’de buy the 2k version.
How is 2k hurting so badly…didn’t they produce Oblivion? Or am I wrong.
February 19th, 2007 at 7:25 pm
2k Games did publish Oblivion but I think EA is going to buy their 2k Sports division which sounds like is struggling…
February 19th, 2007 at 9:40 pm
I’m not sure what 2K had to do with Oblivion, but something, because the logo is right there on the box.