Microsoft’s bid to acquire Activision for some $75 billion is leading to speculation that Apple, Amazon, or Disney could buy game makers Electronic Arts and/or Take-Two Interactive.
A 50% premium on Electronic Arts’ nearly $40 billion market cap would represent a $60 billion price tag. Take-Two’s $20 billion market cap could fetch it $30 billion in a sale…
“We believe the other large publishers are likely acquisition candidates,” Jefferies analyst Andrew Uerkwitzsaid said in a note reviewed by Marketwatch. “We do not expect there will be an over-the-top bid on Activision. If large tech is serious about interactive entertainment, the next few months will surely answer those questions. We view Amazon & Sony as the most likely to be acquisitive.”
Ubisoft Entertainment SA UBI, Take-Two, EA, and Sony “should see some form of valuation expansion in my view” as Walt Disney Co., Netflix, Amazon, Meta Platforms Inc., and Apple Inc “could look to make a move, and Disney or Apple make most sense,” Mizuho analyst Jordan Klein Klein wrote to its clients.
MacDailyNews Take: Owning tentpoles like the Madden NFL series, FIFA series, the Sims, Apex Legends, etc. and, perhaps, putting them or spinoffs exclusively into Apple Arcade would certainly boost subscriptions (Apple Services)!
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