Sixcess said:
The only reason to buy EA now would be to cannibalise it for the parts that are still worth something and dump the rest. The name itself can't be worth a damn now.
Not quite. The book value for EA is sitting at just over eight bucks and the stock price, thanks to the buyout rumour, has been bouncing around the fourteen dollar mark. So if someone buys EA, strips it down, and sells what's left, they're going to lose nearly half the cash they plunk down for it.
Also, believe it or not, if a company does buy EA, just over a billion dollars of EA's value is goodwill. That is to say, "keep this business going and it's worth this much more".
Mind you, the folks who are looking at eating EA are the same ones that ate Nabisco, Toys 'R Us, and Safeway, so if the buyout did happen, chances are the best possible scenario will occur: all the upper management is fired, the projects that are considered lucretive are kept alive, and nearly all advertising goes away.
Stupid EA ads stop, games worth playing become the focus of the company, and John Riccitiello and his band of clueless wonders are kicked out. I could live with that.