Players (and investors) are now betting on which company might be next to be raised. Wall Street seems to think Electronic Arts, which makes the popular Madden NFL football video game franchise, might be the most likely target.
shares electronic arts (she) It rose 3% Tuesday. The company had no comment on CNN Business when asked if it might be considering a sale or looking to make a purchase of its own.
Electronic Arts made several acquisitions in the past year, including the $1.4 billion purchase of Playdemic, a popular mobile golf game developer once owned by WarnerMedia, AT&T (T)The parent company of CNN.
But unless EA takes a step, it increasingly looks like the proverbial weird guy in gaming.
the Zynga (ZNGA) Will give the deal Take-Two Interactive. interactive (TTWO) Greater presence in mobile games. Take-Two stock is up 1% on Tuesday.
And Activision Blizzard (ATVI) Now, thanks Microsoft (MSFT), one of the world’s deepest pockets of help developing new games (and potentially absorbing the costs of any other legal action linked to allegations of sexual harassment and discrimination).
As more people are looking to play games on their phones (as well as consoles or PCs), companies lIke Electronic Arts, as well as smaller French game development company Ubisoft, may need to do more to strengthen its presence in this market. Ubisoft (UBSFF) Shares are up 8% on Tuesday as investors bet it’s a takeover opportunity as well.
Activision Blizzard actually took a big step into the mobile world in 2016 by purchasing nearly $6 billion from Candy Crush maker King Digital.
The allure of gaming, a lucrative business for Apple thanks to the fees it collects on games purchased through the App Store as well as its Arcade service, is not lost on other tech giants. Facebook social networking site (FB) dead owner, google browser (Google) and Alphabet Alphabet in YouTube, Amazon (AMZN) And Netflix (NFLX) They all dipped their toes in the pool.
Game companies are also looking to cement their presence in the so-called metaverses that are becoming more and more popular with younger users.
“Games is the most dynamic and exciting category in cross-platform entertainment today and will play a key role in the development of the metaverse platforms,” Microsoft Chairman and CEO Satya Nadella said in a statement about the Activision Blizzard deal.
“We are investing deeply in world-class content, community and cloud to usher in a new era of gaming that puts gamers and creators first and makes play safe, inclusive and accessible to all,” he added.
It’s as if Microsoft might set its sights on the Roblox gaming platform, which came to the public last year and has become a metaverse phenomenon. Roblox is now worth $46 billion, more than EA and Take-Two. Roblox shares rose 2% on Tuesday.
“Microsoft’s desire to bolster its metaverse… raises the question of the implications for independent systems including Electronic Arts and Take-Two, or even an incumbent like Roblox and whether they are technically and financially disadvantaged, if in fact they are the next frontiers of Interactive Entertainment,” analyst Stifel Drew Krum said in a report on Tuesday.
The Microsoft-Activision deal could put more pressure on the Japanese conglomerate Sony — the PlayStation console maker and PlayStation Studios’ video game development division — to ramp up its gaming game.
While Sony develops a number of popular and exclusive games on PlayStation, the company has lagged behind Microsoft in launching a real competitor to Xbox Game Pass. Cloud subscription service.
Sony shares fell 7% on Tuesday. The company was not immediately available for comment when asked about its reaction to the Microsoft purchase.
But the Japanese competitor shares nintendo (NTDOF), which makes the popular Switch Console, is up about 2%.