Pachter: Microsoft Is Unlikely To Buy EA

Pachter says that possibly half of EA's business is on PS4.

Michael Pachter

As we told you yesterday, there are some rumors that indicate that Microsoft is thinking about the possibility of acquiring Electronic Arts, company behind some of the most important releases in the industry. While many may have flirted with this idea, analysts doubt that will happen.

As part of a recent article, Polygon interviewed several analysts and industry experts to hear the opinion on these rumors. One of them was David Cole, owner of DFC Intelligence, who described this transaction as expensive and complicated.

“EA’s market cap is somewhere around $35 billion. If the world starts finding out that Microsoft is interested in acquiring them, that stock price is likely to shoot up. Then you have to deal with potential antitrust issues, which can take a while. So it’s going to cost a premium,” Cole said.

Later, Cole mentioned that it is very likely that Microsoft will think twice before closing a deal like this since in the past it has not gone well in this issue. “It’s tough to buy a large publisher. And if you get them, you can just screw it up. Microsoft’s track record in that regard is not that good. They had a lot of success with Bungie, but a lot of other things haven’t panned out so well. What are they going to do different this time?”

On the other hand, Michael Pachter, an analyst at Wedbush Securities, also doubted that this deal will come true. The foregoing as much of the EA market is on other platforms: “You have to think that maybe half EA’s business is PlayStation 4 right now. That all goes away in a Microsoft acquisition, including all those licenses, which the holders will insist on being on all platforms. I don’t see it.”

To which Pachter refers, is that, by acquiring EA, Microsoft would have the rights to franchises such as Dead Space, Mass Effect, Titanfall and Dragon Age. That said, much of EA’s business is license titles – like FIFA 18 and Star Wars: Battlefront II – and most likely their owners are not happy that the games in their series are exclusive. Thus, the analyst doubts that Microsoft will invest such a large amount to launch multiplatform titles.

What do you think about this topic? Do you think analysts are right or do you think this deal will happen at some point? Tell us in the comments below.