Activision CEO "Concerned" Over EA-Take Two Deal

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
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Activision CEO "Concerned" Over EA-Take Two Deal


Electronic Arts [http://www.activision.com], a deal that would create the largest single publisher in the videogame industry.

The $18 billion merger between Activision and Reuters [http://www.vivendi.com/]. "When you think about one company in control of the sports category, with no competition from anybody else, that could be a challenge."

In April, the U.S. 2K Sports [http://www.ftc.gov/] division was EA's real target in the takeover, adding, "By taking out all of that, EA has a monopoly in sports. If these guys have a monopoly, they're not going to cut pricing on sports games as quickly."

The EA Sports [http://www.easports.com/]brand dominates the sports game genre, with the only competition of any note coming from Take-Two's 2K Sports division, which publishes NHL, NBA, MLB and college basketball franchises as well as other unlicensed sports games.


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Cousin_IT

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Feb 6, 2008
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Id never thought of that before: EA securing an almost total monopoly on all Sports franchises.
 

oshin

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Apr 25, 2008
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Pretty ironic that the CEO of a company just after a huge merger would be concerned about another huge merger. But i guess his point is somewhat valid.