Sigh. More EA/UBIsoft Drama. This time, I cry more than Baby Jesus.

[schild]

Ubisoft, EA Hold Preliminary Talks -Paper

Wed Feb 16, 5:17 AM ET   Business - Reuters
PARIS (Reuters) - Ubisoft and U.S. giant Electronic Arts are holding talks two months after Ubisoft dismissed EA's acquisition of a near-20 percent stake in the French video game maker as "hostile," the Wall Street Journal said on Wednesday.

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The talks are still preliminary and running parallel with other approaches that family-run Ubisoft is making to broker solutions that might shake off a bid from EA but they could be the beginning of an eventual agreement between the two, the paper said, citing people familiar with the situation.

Ubisoft declined to comment.

By 4:11 a.m. EST, Ubisoft shares had gained 4.39 percent at 33.05 euros. The shares have soared 95 percent since EA bought a 19.77 percent stake in Ubisoft on Dec. 20, sparking speculation it could launch a full bid for the firm.

EA, the world's largest video game maker, earlier this month reiterated it might add to its stake in Ubisoft and seek representation on its board.

Ubisoft has vowed to stay independent and has dismissed EA's approach as hostile until it received more information.

TALKS ON PRICE

Tentative talks between both companies are on the takeover price EA might be willing to pay and how Ubisoft's management might be reshaped, the Wall Street Journal said.

Ubisoft's management said last month that a study by its adviser and shareholder Calyon, the investment bank of Credit Agricole, put a valuation of 33-35 euros per share on Ubisoft based on the value of its studios and brands.

But, adding up the value of the distribution network and a stake in French video games firm Gameloft, the price tag could near 40 euros, some analysts say. That would be double the 19.69 euros a share EA paid for its stake in Ubisoft.

EA, Ubisoft's largest shareholder which also has 20.88 percent of its voting rights, has said it is acting alone and might sell or buy more Ubisoft shares, including a controlling stake.

The Guillemot brothers, Ubisoft's founders, jointly own 17.5 percent and have 22.8 percent of the voting rights.

Caisse des Depots et Consignations, a state-owned French financial institution, holds about 6 percent of Ubisoft's capital. BNP Paribas has a stake of some 4 percent and Calyon a little over 5 percent.

Ubisoft is an attractive target, analysts said, given a free float of nearly 70 percent, 2003/04 fiscal year sales of 508 million euros ($659.2 million) split between Europe and North America, and a portfolio of more than 1,000 titles including a variety of Tom Clancy hit franchises like "Splinter Cell."

With cash of $2.5 billion, EA could also easily afford Ubisoft, which has a market value of about 559 million euros.

($1=.7706 Euro)

Do I even need to say anything? Meh, here's a link.

Goddamnit. Investors love this shit. Gamers hate this shit.

Who's going to start thinking about the gamers?

[jpark]

Unfortunately Schild you can expect to see a lot more of this over the next several months.  M&A activity is picking-up and is expected to increase for some time.  Across all sectors there is the expectation of acquisition activity.  Credit remains cheap, companies are lean with under leveraged balanced sheets and the bigger boys are looking to grow.

Now, if you could indicate a few publically traded shops in your industry you think might be ripe for purchasing :)

[schild]

My problem isn't bigger fish swallowing big fish. I just truly dislike EA. A lot.

Short of their sports line - which I've never spent a dime on - the majority of what they publish just isn't up to par with what I like. I can count the number of EA titles I own on one hand.

[Shockeye]

My problem isn't bigger fish swallowing big fish. I just truly dislike EA. A lot.

Short of their sports line - which I've never spent a dime on - the majority of what they publish just isn't up to par with what I like. I can count the number of EA titles I own on one hand.

Don't forget to count "Catwoman" twice since you bought that for the Xbox and PS2.

[schild]

How could I forget Catwoman. I have 2 extra unopened copies for archival purposes. I figure they'll shoot up in value 700 years from now.

[Shavnir]

How could I forget Catwoman. I have 2 extra unopened copies for archival purposes. I figure they'll shoot up in value 700 years from now.

When it will be used as ammunition against an alien invasion?

Because we all know Romans in Space can't fight off an alien invasion :P

[schild]

We'll find out if they can at E3, now won't we?

[HaemishM]

Can I say FUCK EA again? Really?

FUCK EA IN THEIR STUPID ASSES.

Because it just can't be said enough times and in a big enough font. Should they acquire controlling stake in Ubisoft, there goes MORE game industry folks getting tossed on the shitpile in cost-cutting staff redundancy reductions. As well as more shitty games that "Challenge Everything" except the status quo.

[Strazos]

Besides NHL '98 for PSone, I cannot come up with any other EA titles that I own.

Fuck you EA. You go to hell, you go to hell and you die!

PS: Uh...Infogrames FTW?

[schild]

What would your reaction be if Fox parent News Corporation acquires Eidos?
 
Better them than EA.
It's the Apocalypse!
So when can we expect Lara Croft on The O'Reilly Factor?
Does this mean Eidos titles will finally have "fair and balanced" gameplay?
Guess Viacom has to buy Midway now....

That's from Gamespot. I gotta admit, it's a shame that even THEY dislike EA enough to put them as the first choice in the poll.