Nexon Looking to Buy EA
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Is EA really for sale? What's up guys, welcome back to Clevver Games!
Some exciting news broke today that Korean free-to-play company Nexon, who makes Maple Story & Combat Arms, has reportedly made an offer to purchase EA!
Details are thin- but as a result, EA shares jumped 8% since the story hit.
The 2 businesses are certainly compatible strategically. You have Nexon who's strong in the free-to-play PC market to balance out with EA's focus on console and mobile.
However, commentators are already questioning whether Nexon has the financial clout to wholly acquire EA. Nexon, which floated on the Tokyo stock exchange at the end of 2011, has a market cap of around $7.2 billion while EA's own market cap came in at the $5.2 billion. But with that being said, in terms of annual sales- EA is around 3 times larger than its potential suitor.
Last week, a report indicated EA was planning to lay off as many as 1,000 staff members after underwhelming Star Wars: The Old Republic sales and an expensive Battlefield 3 post-launch marketing campaign. So, maybe EA really does need Nexon to bail them out? What do you guys think? Let me know by leaving a comment below. Until next time, I'm Hailey Bright you're watching Clevver Games.
tags: ea, news, buying, mass effect, nexon, battlefield, star wars the old republic, sales, marketingbillion, tokyo stock exchange, online games, maple story, clevver games, hailey bright