EA Deflects Buyout Rumors, Raises Profits, Sheds Jobs

Thanks to GamesIndustry.biz for its article discussing the quashing of rumors regarding media giant Viacom buying Electronic Arts, with Viacom chairman Sumner Redstone (also in the process of privately buying into Midway) saying: "We have looked at the obvious companies like Electronic Arts... but their price is so high, it would be dilutive to our earnings. We have ruled it out." Meanwhile, EA's annual financial report has been released, showing "net revenue for fiscal 2004 was $2,957.1 million, up 19.1 percent", and also confirming "an [in-progress] workforce reduction of approximately 117 personnel in development and administrative departments", following the closure/relocation of "the majority of our leased studio facility in Walnut Creek, California and our entire owned studio facility in Austin, Texas." The financials also note that rising online sales from casual gaming portal Pogo.com was "partially offset by a decrease in subscription net revenue from The Sims Online, Ultima Online, and Earth & Beyond subscription services."