Monday, April 30, 2012

Nexon Wants to Buy Electronic Arts?

Yep. The question mark was intentional. That was literally the question I had in mind when I read the news. Also: Does Nexon (a South Korean MMO developer/publisher, responsible for Maple Story) actually have enough money to buy EA and not the other way around?

It turns out they do, according to a recent article.

Nexon's announcement last week was that they are looking to buy up developers, with EA part of the companies that they are bidding on. As for Nexon's funds, the publisher has actually been doing good, raising $1.2 billion last year in Japan's biggest IPO of 2011, Nexon has since seen rapid growth.

Now, EA is one of the biggest game publishers in the industry, but they're not so big that other bigger companies can't gobble them up. Also, compared to Nexon, EA's market cap is relatively small right now. Their stock is at an all time low while Nexon can use leverage to raise even more funds for a straight buy-out. On the other hand, this news could also give EA's market share a much-needed spike, so anything could happen right now.

Frankly, if it we're up to me, I'd rather just let EA be bought by a company that is more familiar with their kind of business and more in tune with what the market and the gamers themselves want - like Valve.


No comments: