Electronic Arts has been in the news a lot recently. Well, the company wants to make more headlines through its most recent talk during the UBS Global Technology Conference 2017 in San Francisco, California, where they revealed that they plan to make more acquisitions in the near future. According to EA’s chief financial officer, Blake Jorgensen, the company is planning to acquire more companies… soon.
The acquisition of a company can take place under the radar and can be swift without a lot of people even knowing that an acquisition took place. On many accounts this happens frequently when a company reaches a level of growth considered significant by other larger conglomerates and investors.
Well, EA is no small company, and as a whole the business practice is to become increasingly big, successful and appealing to others to draw in revenue. Additionally, the act of acquisition can damage or increase revenue for a company, but most aim for the latter… if the cards are played just right.
Thanks to businesswire.com we learn that on EA’s investor relations and share holder web portals that Blake Jorgensen, the company’s CFO, sees there are “other studios” that could become sub-scale over time and will want to be part of a “large organization.”
The ever increasing size of EA means that both a large and small-scale acquisition is more than possible, and as documented in the above links, it details how EA tries to keep good relations with “everybody” in the industry, which could mean a well known name is in EA’s sights for acquisition.
Furthermore, the company and Jorgensen want to step up certain sectors and believes that it can be done “through acquisitions”.
My thing is, though, if EA acquires another company what more is there to increase when it keeps shutting down studios already under the Electronic Arts brand? And it’s not like EA has major competition outside of Activision and Ubisoft, so there’s nothing really eating into their growth possibilities other than their own blunders.
Anyway, who do you think EA is planning on acquiring next?