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EA in Takeover Talks with Ubisoft

Voodoo Extreme has the word that EA and Ubisoft are in talks regarding a possible takover price for the French company. From the article: " The talks are still preliminary and running parallel with other approaches that family-run Ubisoft is making to broker solutions that might shake off a bid from EA but they could be the beginning of an eventual agreement between the two, the paper said, citing people familiar with the situation." Gamespot states that EA denies the topic of takeover is on the block during the talks. No word on what such a development would have on Ubisoft's relationship with the Canadian government.

31 comments

  1. Simple... by PhilippeT · · Score: 1, Insightful
    No word on what such a development would have on Ubisoft's relationship with the Canadian government.

    Simple if EA takes them over as long as they keep the jobs here then the Government wont have a problem.
    --
    A psychopath can't tell the difference between right and wrong. A sociopath knows the difference - he just doesn't care.
  2. Background info... by keiferb · · Score: 2, Insightful

    ...is here:

    http://games.slashdot.org/article.pl?sid=05/02/1 0/ 1747259&tid=187&tid=10

  3. Expansion until the end. by Tr0mBoNe- · · Score: 1

    There are other companies that are doing this... SCO tried to take the UNIX market by legal force, Microsoft is patenting everything in sight, and now EA is buying all the competition. Some have not done so well, but in a few years, I believe that a few large "umbrella corperations" will control 90% of the market. I'm not saying that is a bad thing, but I don't know if Proctor and Gamble brand cheese or Microsoft cars are good.

    I think this buy-up process will re-ignite the flame of "build up a small software company with a good idea, then get bought out and retire at 30." that fed the dot-com bubble. That means jobs, market explosion, and then the ineviable fall again. Welcome to the rollercoaster we call the technology market... and soon, all markets.

    And I don't think that the Canadian Governemnt will get involved. Unless EA wants to buy and liquidate, thus putting hundreds of people out of work, and into the welfare lines. Also, most companies in Canada are subsidized for different jobs. I work with Research In Motion, and we have to log our R&D time for tax benifits, and for each co-op intern (like myself) they get more tax breaks. Tax breaks loose money for governemnts, so this is more of a prevention of jobloss measure than anything else... If they can keep jobs in the country, that's more money for them...

    --
    while(1) { fork(); };
    1. Re:Expansion until the end. by Trepalium · · Score: 1

      However, if EA's history with such purchases is any indication, most often EA buys the company, and then one year later announces they are reorganizing. By reorganizing, they mean closing the purchased company's doors, and laying off all the employees by 'moving' their jobs to HQ, or making them redundant. Of course, the excuse will be that they are 'underperforming' or somesuch nonsense.

      --
      I used up all my sick days, so I'm calling in dead.
    2. Re:Expansion until the end. by Tr0mBoNe- · · Score: 1

      true... that is a problem with the Canadian Government... and being a canadian, I don't know if that even means anything now...

      --
      while(1) { fork(); };
    3. Re:Expansion until the end. by Phisbut · · Score: 2, Insightful
      There are other companies that are doing this... SCO tried to take the UNIX market by legal force, Microsoft is patenting everything in sight, and now EA is buying all the competition.

      When that happens (not *if*, but *when*, because it will happen), then the game industry will be rotten to the core.

      This is really sad. I used to work at Ubisoft Montréal, and I was given an offer for a decent programming job there. That was in january 2004. I refused it and decided to leave the game industry for a while, because of what it was becoming and because I didn't want to become a slave to the big corps. I am now developing office utilities application for a small business in downtown Montréal, in a much much better working environment (the complete opposite of the "EA Spouse" story), with a much higher salary. I decided I'd give the game industry 10 years to stabilize and give them a second chance in 2015, if it's worth it (that is, if something else than EA exists). In the meantime, I'll keep working on my GPL'd game(s) in my spare time. They won't be as good or as flashy as a commercial game (you can only get so much quality with a team of 3 people), but at least I'll have fun doing it (contrary to being whipped by EA while I have to code for 16 hours a day).

      It is sad though for people who either didn't see it coming, or have no other skill and are "forced" to stay in the industry and be exploited by EA.

      --
      After 3 days without programming, life becomes meaningless
      - The Tao of Programming
    4. Re:Expansion until the end. by ChristianBaekkelund · · Score: 1

      Do you think Microsoft employees feel "exploited"? I mean, if you take that as an analogy, of course, which I'm assuming you probably do.

    5. Re:Expansion until the end. by ChristianBaekkelund · · Score: 1

      "then the game industry will be rotten to the core."

      In what way?

      And do you mean like the entertainment industry?
      Or like the OS industry?
      Or like the general office software industry?
      Or perhaps radio?
      Or maybe banking?

    6. Re:Expansion until the end. by ChristianBaekkelund · · Score: 1

      What if they actually were underperforming?

      There's generally a reason companies get bought by other companies when they do. For game studios, it's usually after 1 or 2 failed releases, or a very long time with no release.

    7. Re:Expansion until the end. by eboot · · Score: 1

      'I believe that a few large "umbrella corperations" will control 90% of the market. I'm not saying that is a bad thing...' Surely that is an oligarchy and unless a market is a natrual oligarchy then it an example of market failure.

      --
      Two tears in a bucket. Motherfuck it.
    8. Re:Expansion until the end. by Phisbut · · Score: 1
      Do you think Microsoft employees feel "exploited"? I mean, if you take that as an analogy, of course, which I'm assuming you probably do.

      Wow... talk about over-simplification... I said "be exploited by EA". With the EA Spouse story and some leaked internal memos, I think it's common thought that EA exploits its employees (unpaid overtime, insane hours, etc.). I never even mentionned Microsoft. Nothing leads to believe Microsoft exploits its employees like EA does. Please explain to me how you got to think I thought Microsoft exploited its employees.

      --
      After 3 days without programming, life becomes meaningless
      - The Tao of Programming
    9. Re:Expansion until the end. by ChristianBaekkelund · · Score: 1

      "Please explain to me how you got to think I thought Microsoft exploited its employees."

      That appears to be the standard argument/analogy made when people decide to yell about how evil EA is, with little reason to single them out other than they are the biggest. Just scan Slashdot comments on any EA story. The EA Spouse stuff gives people a bit more reason to talk badly of EA, but most people don't seem to understand that the problem described by EA Spouse is an industry-wide problem, not confined to EA (and in fact, not even confined to all of EA).

      "Nothing leads to believe Microsoft exploits its employees like EA does."
      Prior to the EA Spouse thing, did you think EA exploits their employees? Probably not. It's likely many businesses all over the world exploit their workers in one way or another, but no one has spoken up as of yet (and possibly, no one ever will).

  4. Would you want to work for EA? Not Me. by pawhitak · · Score: 1

    Everyone I know that works or worked for EA says nothing but bad things about the experience. If I was at Ubi I don't think I would want to go to work for a company that, at best, is a sweatshop for tired franchises.

    1. Re:Would you want to work for EA? Not Me. by Anonymous Coward · · Score: 0

      As if Shadowbane isn't a tired franchise. If EA takes control, that's the first item out the door.

  5. Ubisoft isn't Canadian by Cyclone66 · · Score: 2, Informative

    Yes they develop here but they're a French company.

    1. Re:Ubisoft isn't Canadian by Phisbut · · Score: 1
      Yes they develop here but they're a French company.

      EA doesn't care about that. Whether they're a French, Canadian or African company, they'll screw them up just as bad.

      --
      After 3 days without programming, life becomes meaningless
      - The Tao of Programming
  6. Dear EA by 1019 · · Score: 1

    Just stop it. Really, just stop. Go focus on updating your latest insipid sports title.

    --
    shame on us / for all we have done / and all we ever were / just zeroes and ones
    1. Re:Dear EA by Phisbut · · Score: 1
      Just stop it. Really, just stop. Go focus on updating your latest insipid sports title.

      Maybe this is the extra boost that is required for people that actually love to make video games to leave the big corps and start making really good games.

      Microsoft tries to buy every competition, but they can't buy Linux. EA is buying every competition, will it take FOSS games to stop them?

      --
      After 3 days without programming, life becomes meaningless
      - The Tao of Programming
    2. Re:Dear EA by ChristianBaekkelund · · Score: 1

      Just stop what? If you're going to complain, at least make it clear what you're complaining about. :)

  7. Eat Or Be Eaten by blueZhift · · Score: 1

    Let's turn this thing on its head. EA looks like a ravenous beast right now, buying the competition or making deals to force competition out of certain genres, like American football. And let's not forget the now infamous working conditions! But maybe it's not at all evil afterall, for as big as EA has grown, there are bigger entities out there still. The current EA binge may be a defensive strategy intended to quickly grow the company to avoid being bought by one of the media behemouths like Viacom or Time Warner. Video games are a market that now rivals the movie industry in revenue, and perhaps more importantly, mind share. People are playing more games, sometimes, instead of watching tv or going to the movies. This makes companies like EA very attractive to the media giants. So growing like crazy is a matter of survival if EA wants to remain independent.

    1. Re:Eat Or Be Eaten by p373 · · Score: 1

      Even if your theory is true, forming your own monopoly is still not a respectable way to combat other monopolies.

      --
      http://www.thelung.org
  8. How UbiSoft can fight this off by Safety+Cap · · Score: 1

    Require in the buyout contract that all employees work no more than 8 consecutive hours in any 24-hour period, no more than 5 consecutive days per week, and mandatory 4 weeks vacation (take it or fired).

    --
    Yeah, right.
    1. Re:How UbiSoft can fight this off by ChristianBaekkelund · · Score: 1

      ?....what if Ubisoft employees already work much longer hours? The "EA Spouse" phenomenon is industry-wide, not a localized to EA problem.

    2. Re:How UbiSoft can fight this off by hollismb · · Score: 1

      Yeah, cuz that's exactly how it works in every other industry that also has deadlines. Riiiight.

    3. Re:How UbiSoft can fight this off by Frenchy_2001 · · Score: 1

      8h a day? 5 days a week? 4 weeks vacations? Hello~~~~?
      Ubisoft is a french company.
      This is 35h a week and 5 weeks vacations MINIMUM.

      And opposite to the US, work conditions and regulations are actually enforced.
      There is a dark side to capitalism and deregulation... call it slave labor.

  9. Resistance is futile by Celorfin+Jr'ent · · Score: 1

    I am Probst of EA. Your company as it has been is over. From this time forward, you will service... us. RESISTANCE IS FUTILE.

  10. Not Again! by ABaumann · · Score: 1

    Remember Bullfrog? Remember Origin? These companies made some great games. Then they got baught out by EA and it was downhill from there. I'd include Maxis, but they didn't even make a good game before they got baught out by EA.

    1. Re:Not Again! by Frenchy_2001 · · Score: 2, Informative

      Bullfrog and Origin made great games. Then again, they were mostly centered around great, known, personnaes (Richard Garriot, Peter Molineux...). So, when they realized what their studio became, they just left and joined or created other companies (NCsoft, Lionhead...).

      A creative industry is bound to keep smaller, more "indy" studios. They will go through editors for distribution, but the games and creative direction should stay with the studios...

  11. It's all about the shareholders by {tele}machus_*1 · · Score: 1

    If EA isn't about signing exclusive deals and taking over hot studioes and game properties, EA is doing its shareholders a disservice. Unfortunately, EA is taking a short term approach to the video game market: basically, they are going to squeeze it for everything it's worth, and then abandon the dessicated husk when the industry tanks because crap games are being made by otherwise good development teams who are overworked and underpaid.

  12. Nah by Safety+Cap · · Score: 2, Interesting
    That's how it works in other industries where projects are managed properly.

    In industries/companies where "Project Management" is a punchine to some joke, it is usually the norm to work insane hours, make lots of mistakes, and waste time & money. Oh, and have "deadlines" that are fantasy at best.

    --
    Yeah, right.
  13. I think I can sum up my feelings in one word... by UranusReallyHertz · · Score: 1

    ... NOOO!!!

    --
    Smoking is an expensive, slow, and unreliable method of suicide.