Slashdot Mirror

← Back to Stories (view on slashdot.org)

EA Takeover Moves and Countermoves

Posted by Zonk on from the i-love-marketroid-speak dept.

Details have emerged regarding several EA takeover related stories. The long running dispute with Digital Illusions may be coming to an end as EA has waived the requirement to own majority shares in the company. They still plan to purchase as many shares of the company as possible. Ubisoft announced that they have a defense planned against a hostile takeover bid from EA, should it arise. No mention of what this plan is, of course. In reaction to the recent press coverage of their move to purchase Ubi stock, EA has announced that their purchase was not hostile, and that they'd spoken often with Ubi representatives. From the article: "Florin reiterated that Electronic Arts was not asking for a seat on Ubisoft's board. 'We had the opportunity to buy a 20 percent stake in Ubisoft and we haven't asked for anything... That's not hostile. In our industry, one doesn't make hostile moves because our value lies with people,' he added."

2 of 120 comments (clear)

  1. Maybe shareholders should take notice. by glrotate · · Score: 5, Interesting

    If EA is so eager to buy these companies maybe the current shareholders ought to be asking their boards what value EA sees that they haven't been able to realize.

  2. Why EA is doing this by Anonymous Coward · · Score: 5, Interesting

    I think EA is just doing this to keep people guessing and to put their competitors on the defensive.

    For basically no cost to EA (they have tons of cash in the bank anyway) they managed to make Ubi (a competitor) hold several emergency board meetings and probably tied up all of senior management for several weeks. Instead of concentrating on making their products, they have to respond to press and government inquiries and come up with a defense strategy.

    Furthermore, they got Vivendi involved and probably caused at least some distraction in the management of every other medium-sized publisher. _And_ they diverted some attention from the difficulties EA is having acquiring Dice.

    I don't think they really care if they acquire Ubi or not. If it looks doable in a couple months, there's some value there and they'll go ahead. If not, then they probably got a nice short-term return on an investment of some of their spare cash.