Keep an eye on: Video Game Consolidation
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Is the consolidation wave over or restarting in the interactive video game industry? Depends on who you ask.
Last week, at the Reuters Media Summit, industry leader Electronic Arts suggested that the time for big deals had passed:
“Is it ripe or has it already been picked? I would argue that it’s been largely picked. That doesn’t mean it’s done, I think there will be more consolidation to come, but let’s just say a lot has already happened.” (John Riccitiello, CEO, Electronic Arts)”
I guess “more…to come” is right: On Sunday, France’s Vivendi said it will merge its video games unit with Activision in a $9.85 billion deal that combines the hit “Guitar Hero” and “World of Warcraft” franchises under one roof.
So that begs the question — what will Electronics Arts do in response? Are there more deals to be done? What do you think will happen in the gaming arena?(Reuters)
Keep an eye on:
- News Corp, LinkedIn not in takeover discussions. (Reuters)
- Radio personality Don Imus returns to the U.S. airwaves. (Reuters)
- Coca-Cola is waiting out Facebook’s ad platform growing pains. Now Overstock.com and Travelocity decide to sit on the sidelines as well. (paidContent)
- Associated Press plans a reorganization to focus on multimedia. (NYTimes)
(Photo: Reuters)
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NewsVisual reported today that Vivendi SA’s vast network through multiple entertainment entities may have been put to use as it prepares to take control of Activision Inc. The deal will supposedly give Vivendi a large presence in the gaming industry.
I think it just has begun. Being that competition is more fierce than ever before plus the fact that video games are becoming more and more expensive to develop, consolidation is a must.
At this moment I am pretty sure EA is contemplating possible merges, possibly with a company that specializes en Online Playing or one that has en upper hand in the Asian market.