Monday, April 30, 2012
Nexon Wants to Buy Electronic Arts?
It turns out they do, according to a recent Forbes.com 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.