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Bottom line: The gaming landscape has been shaken to its core, and we’re not even a full month into 2022. More deals could be in the pipeline, but regulators' response to Microsoft's buyout of Activision Blizzard will likely play a big role in determining when or if they happen.
Regarding the Microsoft deal, many have questioned how Sony and others might respond.
Analysts at Enders Analysis believe that if Sony wants to hop aboard the merger and acquisition bandwagon, its best bet might be a buyout of Electronic Arts. With a current market cap of around $37 billion, however, it’d be far more affordable for Sony to go after lower value targets like Take-Two or Ubisoft, which are valued at $18.33 billion and $6.9 billion, respectively.
MKM Partners analyst Eric Handler, meanwhile, seems to think Disney might be interested in a run at EA. “A great way for Disney to build upon its digital future and for Bob Chapek to step outside Bob Iger’s shadow would be to buy EA,” Handler said.
Other players have also emerged as of late that could make a serious run in the gaming industry such as Netflix. COO Greg Peters recently said the streaming giant was focused on creating games based on franchises it already owns like Stranger Things but was also open to the possibility of licensing large game IP that people would recognize.
It's still very early days for Microsoft's buyout of Activision Blizzard. Regulators could get involved, and that might dictate how other big companies decide to proceed.