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Rumor: Private Equity Firm In Negotiations To Buy EA

 

The New York Post is reporting that KKR and Providence Equity Partners have contacted the publishing giant Electronic Arts about a possible acquisition.

The report cites an anonymous source who says the negotiations are in the "early days." One of the companies involved, Providence Equity Partners, became a major investor in Bethesda Softworks' parent company Zenimax Media in 2007.

When contacted by the New York Post, EA said it "does not comment on rumor or speculation.

Source: New York Post

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Comments
  • Someone just needs to bring change to EA all together. Get some people who actually know what gamer's want to run the company.
  • I want some people who actually knows the game business to buy out EA, not some company that doesn't look to see if their product is good, but if it's profitable.

    EDIT: Also why is EA looking to sell? Not that while ago there was a rumor that the company behind Combat Arms was trying to buy them out.
  • Sounds like a good idea. Change things up for EA.
  • Oh boy... EA + more money. I just hope it doesn't make them worse than they've always been throughout their history.
  • Please do so!

    and then make games (sequels) that the IP's truly deserve.

  • That doesn't bode well, venture capitalists are usually never gamers and as such don't have much gaming sense. They tend to be only interested in things that make money and nothing else, meaning that trying to get a new IP out of the company will be like pulling teeth. They aren't risk takers (or at least for the first half-a-decade).
  • uh oh... i mean, if you thought ea was a bunch of greedy morons who didnt care about gamers before, just wait...
  • Crazy idea:

    Let's start a kickstarter to buy EA, and then we burn every single business tactic they've ever used. We start from scratch by building good relationships with the developers and letting them create the most creative IP's they wish. We don't over-advertise our game and set them up for failure by expecting them to sell ridiculous amounts of copies in order to break even, and we treat our customers with respect and publish the most complete game with the highest possible quality that we can deliver. Oh, and we don't milk a game franchise to death!

    What do you guys think?
  • As long as they make another Syndicate and don't ruin Battlefield.

  • So they wanna to make a deal with the devil.

  • o.o ok ?

  • It seems like my companies and firms today are getting involved with the industry because they're seeing how lucrative it is (well, that might be wrong, but there's definitely some success), and they're taking advantage...I don't like this...
  • Hmmmmm... I have mixed feelings for EA. I dunno whether to be happy this is happening or scared for EA's future.
  • Stay the heck away EA! Far Far Away!

  • I'm interested to see what happens with this. I feel that from a business aspect KKR and Providence Equity Partners could destroy the integrity of EA, create a company that focuses on poorly built games, and take advantage of a demographic of gamers that are uninformed on the quality of games they buy. In contrast they could reinvigorate EA and contribute to them publishing more IPs, and create better in-house games. However businesses tend to stick with what is proven to create profit rather than trying something risky to shake up the market. It'll be interesting to see what happens to EA in the future if these negotiations prevail.
  • You think that KKR and Providence Equity Partners know what gamers want? No, they see money!
  • The power vacuum created by a dead EA would let other publishers shine. A bigger Activision would be a small price to pay to see Epic, Bethesda, Ubisoft and the others grow.
  • EA's tends to be bad enough as a corporate entity of their own; serving as an investment to another group wouldn't improve that, I don't think.

    Still, the optimist in me wants to think we'll see some bursts of risk and innovation if this gives them access to more funds and investors.

  • I didn't know the Ku Klux Klan had a private equity firm, but it kinda makes sense that such a hated company would be purchased by a group that is filled with such hate.

    EDIT: Oh sorry, it was KKR not KKK. My apologies
  • Who would buy the titanic before it sunk?
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