Apple interested in acquiring Electronic Arts?

By on May 5, 2009, 5:39 PM
Apple is considering an offensive into the gaming market, according to Guy Adami from CNBC's Fast Money, who claims to have heard “chatter” about the company being interested in acquiring publishing giant Electronic Arts. While not offering much analysis for such a seemingly unlikely prediction, the notion of a deal between the two companies has gained some credence in light of Apple’s recent hires, which include several executives with noteworthy backgrounds in videogames.

Richard Teversham, formerly the senior director for insights and strategy at Microsoft's Xbox Business, left the company to join Apple this week and prior to that Apple picked up two former CTOs from AMD's graphics division. One of them, Bob Drebin, is also the man who created the graphics processor in the Nintendo GameCube. Certainly, all this suggest that a major move onto the gaming business through the iPhone and iPod touch is underway, but if rumors are true then Apple's ambitions would appear to go far beyond just the handheld market.

It's obvious from its failed Take-Two merger bids that Electronic Arts is keen to expand as well, though it has recently been forced to cut back its operations following third quarter losses of over $600 million and their fiscal year ending $1.08 billion into the red. Perhaps they could use some of that $29 billion Apple has piled up in the bank. We’ll have to wait and see where this goes, but in the meantime you should probably take the rumors with a large grain of salt.




User Comments: 13

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Emin3nce said:
Just what the industry needs, Apple only games... and a sharp decline in PC games that have any real value thanks to tonnes of Apple branded advertising - and don't kid yourselves, it will happen.
skitzo_zac said:
But, But, But............. This has to be pure rumour, it just can't happen.
Relic said:
While I don't take much out of CNBC...for sake of argument lets say it's true. While Apple going into the handheld market could be a positive thing imo. Apple going beyond that could be interesting while they could be making more games viable for Mac with EA which could be great for Mac users. Nevertheless if it turns into Mac only for certain titles vs PC only titles (like consoles) this could really hurt gamers in the long run. And the way Apple treats jailbreaking and other modding of there products I don't know how happy I'd feel with them entering the gaming market...but at least they fit EA with those policies.
ranger12 said:
I'm sick of apple and I'm sick of what they do with their products. Apple is like big government. They have to have there hand in everything and they have to have absolute control and it supresses the creativity of people who would try and have it any other way. I own an iphone and a macbook pro so I know what I'm saying. My next phone will not be an iphone and my next laptop will not be made by apple. If apple did buy out EA I can guarantee you I would not support EA at all.
Tekkaraiden said:
And I though EA was bad before.
9Nails said:
No kidding Tekkaraiden! EA's not the most popular company in the community. I doubt even the shiny Apple can improve EA's - snobby with a consumer hostile attitude - image. Apple has a mountain of cash; I'm sure that there is tastier fish in the sea. They should try someone with a loyal fan base and interest in portables, like Hudson Entertainment.
timdeezie said:
This is the beginning of the end for gaming... I am actually sad that this might happen.
Emin3nce said:
Come hither Angry Mob! Let us rise against the oppressive IP legislation of Apple! Oh sh*t, i might just get sued for saying that.
supersmashbrada said:
Who agrees, the title of this short article is hilarious in itself. I didnt even have to read any further.
captain828 said:
As hilarious as it may sound, I wouldn't want Apple's monopolistic sh!t in the gaming department.
tengeta said:
This would be fantastic...I have a MacBook now anyways LOLBut really, I don't get the complaints. EA is a far worse corporation than Microsoft and Apple combined.
tasdk said:
[b]Originally posted by Emin3nce:[/b][quote]Just what the industry needs, Apple only games... and a sharp decline in PC games that have any real value thanks to tonnes of Apple branded advertising - and don't kid yourselves, it will happen.[/quote]Apple would be crazy to start making Mac-only games. However, by developing EA PC games on Mac OS, they could gain a competitive advantage. All the the games would be available for Mac as early as, or before, Windows, and performance/reliability is usually best on the native platform.It might be a smart move if Apple and EA could make it work, but that's a big if. A failed merger could be a disaster for both of them, and destroy a lot of shareholder value.
Badfinger said:
Great, another reason to hate EA, LOL!
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