WSJ wants Disney to buy EA

By populuxe
WSJ's Martin Peers thinks that Disney needs to buy EA. Its at a 62% discount to its peak value of $19B. On the surface, it seems like a great idea and I'm sure someone has to be thinking about this. Disney needs to build its business in interactive media and there is only so much it can do organically. What no one seems to be talking about are the downsides of EA. Its a sweatshop! And pretty much the polar opposite of the Pixar working environment. And it may just be too big to deliver the type of quality product Disney wants to make. Also, it would be huge distraction from brand Disney. The Hollywood Reporter article is right that there is a lot of synergy between ESPN and the Madden franchise as well as the rest of EA Sports. But what do you do with Command & Conquer or Warhammer? Disney decided long ago not to go into hard "M" titles, not because it couldn't come up with another banner for that like Touchstone or Mirimax but because consumers would still know its Disney behind it all and it detracts from the Disney brand. But beyond this, Disney has really benefitted in the last few years from the focus on being Disney. An EA merger could reverse all that and turn TWDC back into a unfocused conglomerate instead of a synergistic team.
 

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