Falling stock prices and threats to traditional business models (digital distribution & social games for example) have made videogame companies ripe for takeover by media conglomerates.
A column on Fortune discusses the lure of such takeovers for Hollywood-type companies, but cautions that it’s a buyers market and that the conglomerates should be in no rush to pull the trigger:
But there's no rush. Next year isn't shaping up well for the gamers so they may get cheaper. EA will be releasing 30 titles, down from 50. Take-Two, creator of Grand Theft Auto, is expected to report its fourth losing year in the last five. THQ has no breakout hits on the horizon, Wells Fargo notes, and faces another difficult year.
Shares of Electronic Arts and Take-Two Interactive are down 70% from previous highs, while THQ is off 90% the column notes, adding that the current combined enterprise value of the three companies is around $4.0 billion.
EA’s bid to take over Take-Two should serve as a further reasoning behind a wait and see approach for companies like News Corp., Time Warner and Viacom:
But big media can wait. Indeed, it need only look at the bullet EA dodged when it stepped back from a $25.74 a share hostile bid for Take-Two in 2008. That's over three times Friday's closing share price.
Comments
Re: Is the Time Ripe for Videogame Takeovers?
Very scary though I dont trust Hollywood with movie renditions of my games.
But to actually own them OH SHI-
Never underestimate the power of idiots in large amounts.
Re: Is the Time Ripe for Videogame Takeovers?
I will think that the corporate takeovers by Hollywood Movie publishers on the Game Developers will only affect the companies in the North American region and other western countries.
Companies like Nintendo, Sony, SEGA, Namco-Bandai and CAPCOM should still be able to survive because they are Japanese Companies that have a strong loyal country like Japan to prevent any western takeover.
And companies like Microsoft, EA and also Ubisoft should also be fine in the Western Market of Videogames because they have the money to survive for a long time of around 5 or 10 more years.
For smaller developers and small publishers this could be a real fight to survive and it makes it harder when stores won't sell games from a smaller publisher like what has happened in the UK and also Australia.
Re: Is the Time Ripe for Videogame Takeovers?
Re: Is the Time Ripe for Videogame Takeovers?
But question is when will the media be on the game industry side? I hope soon, but there will always be politicians that will have to f*** it up for everyone.
"It's better to be hated for who you are, then be loved for who you are not." - Montgomery Gentry
Re: Is the Time Ripe for Videogame Takeovers?
I could easily see the following merging together.
THQ+Take 2
Capcom+Konami+SNK
Re: Is the Time Ripe for Videogame Takeovers?
THQ was never seriously interested in T2. The only company that ever was was EA, and they fucked that up royally (both of them, really).
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He was dead when I got here.
Re: Is the Time Ripe for Videogame Takeovers?
I doubt the gaming industry will be completly buy-out by hollywood. Maybe the smaller company but not the bigger ones like capcom and nintendo.
http://www.magicinkgaming.com/
Re: Is the Time Ripe for Videogame Takeovers?
A column on Fortune discusses the lure of such takeovers for Hollywood-type companies
Be afraid. Be VERY afraid.
Although it wouldn't impact EA at all, since they are already cookie-cutter Hollywood-type crap.
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