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TSWs success to determine EA / Funcom merge
sacredfool
Member UncommonPosts: 849
I just posted the below on TSW forums, and many people have asked for sources,but I can't provide any, so asking here instead... anyone heard of the below??
Hey guys, any of you heard those rumours too? 
I heard it just now in polish so the below is the best translation/transcription I can manage... TSW was actually mentioned which is why I got interested in the topic in the first place.
A source in EA told us that the company is looking to acquire Funcom Q3 or Q4 2012. The actual details of the merge will depend on the success of the current partnership regarding The Secret World MMO. Both EA and Funcom have shown interest. EA is looking to expand in the MMO market following on the success of it's recent flagship project SWTOR and Funcom has many skilled programmers and other assets like access to an MMO specific engine . Funcom will remain as an independent entity in the structires of EA while being able to use the EA resources and help with publishing and expanding into other markets.
More details will be released in July or August after the launch of The Secret World.
So now the question is.... how do we stop EA???
Do we buy TSW to make the "EA and funcom partnership" successful while at the same time making it harder for EA to buy Funcom as it will be more expensive, or do we refuse to buy TSW to make the partnership unsuccessful, potentially risking Funcom going bankrupt and being bought out by EA anyway? :S
SF
If anyone can confirm it, please reply. If you can't, feel free to discuss!
BTW, added a poll.
Originally posted by nethaniahSeriously Farmville? Yeah I think it's great. In a World where half our population is dying of hunger the more fortunate half is spending their time harvesting food that doesn't exist.
Comments
Judging based solely on past launches for Funcom, a merger would be good for Funcom (i.e. they would receive additional project backing/investment), but I don't believe EA would receive a good return on their investment. That's only based off of previous launches.
I'm hoping that TSW is amazing, and if that were the case it would put another decent revenue stream under EA's belt.
Where's the please don't merge choice?..
Cause that's the one I wanna pick..
PM before you report at least or you could just block.
d) Neither.
EA would just ruin whatever Funcom tries to do, resulting in failure to turn a profit on the aquisition.
When I want a single-player story, I'll play a single-player game. When I play an MMO, I want a massively multiplayer world.
Pretty much this.
Lets be quite clear from the start here.
IF EA wanted to aquire Funcom, then it is NOT because of their 'recent success with swtor' its because of its LACK of success.
Like Microsoft tried to do, EA are trying to muscle into the MMO market with its money... but as is clear with MMO's, More money a good MMO does not make.
Sorry OP but you are but a liar trying to stir crap up.
I hold stock in both EA and Funcom and am privy to all investor reports.
That aside the logistics of such an aquistion are impossible.
First off the numbers do not work, EA is currently trading just off an all time low thier overall value is down over 200 m even though they are showing a cash surplus. EA is keeping a 400m cash surplus as they are weak right now and in a perfect position for a take over and take overs are fought with cash assets.
I could get into EA much more in that they are not happy with thier MMO investment, and that handheld devices are their strongest return and direction they plan to push the future.
Funcom on the other hand is trading at an all time high, is holding a very large number of convertible bonds in lieu of cash, Funcom is showing no weakness, has strong holdings and diversification.
Funcom is expanding across Europe while EA is retreating across the US, Funcom is hiring, EA is firing..
Frankly next time you wanna make something up at least do your homework first.
"Funcom will remain as an independent entity in the structires of EA" Just like they said with ever other merge they've done ? EA will assimilate Funcom into the assembly line game development mentality resulting in less innovation as they make it more about the money, look at the downfall of bioware games, from nice complex RPG's, to simple barely challenging bores with lots of eye candy. Funcom partnership with EA sealed the deal I'll not touch TSW, as a gamer I will not support EA fo the sake of gamings future.
Doesn't Funcom already have a spotty reputation? IIRC the launches can be a bit rough.
Maybe -1 times -1 equals 1?
the OP is a troll, please don't bait.
can any mod lock this thread... the OP is spreading false information.
That means nothing. WoW had a freaking terrible launch...Knee-Surfing anyone?
For the first 2 weeks the game was unplayable, now it's the biggest MMO on the market. Saying a company is shoddy because of crap launches is like saying that fish is bad for you because it goes bad if you leave it on the counter for 12 hours.
Wait. So are you saying Funcom is buying out EA!!?? WOW!!!
Don't we wish eh?
"Gypsies, tramps, and thieves, we were called by the Admin of the site . . . "
I never like EA after what they did with Earth and Beyond. If Funcom joins EA in any kind of merger then ima not going to play their games! ha!
"A strange game. The only winning move is not to post."
Might want to take your own advice before you post something stup-OOPS TOO LATE! ¯(°_0)/¯
Nowhere in his post did he even imply that Funcom's buying out EA. He only pointed out that EA's financial situation is such that they aren't in a position to buy out anyone.
There are legitimate reasons to be wary of Funcom, but you SERIOUSLY need to step away from the anti-Funcom koolaid.
I don't think you know how merges work
Big companys struggling look for smaller ones to absorb to make their company look better I.E EA Buying Funcom is realistic if EA wanted it the company has its hands spread in every genre and one failed MMO wont make or break EA as long as EA has its hands in the NFLs pocket it will always have a cash cow via madden + ncaa and other sports related games that do sell very well.
I know exactly how mergers work I've been through enough of them, and even though the word merger implies a willing mutually beneficial arrangement the fact is in a merger a stronger company aquires a weaker company and very rarely if ever is it mutually beneficial to anyone other than the CEO/President, and a handful of the major stock holders.
The ONLY way EA could even consider aquiring Funcom is in a stock offer, HOWEVER with EA traiding @ $15 and Funcom trading @ $23 that is 1.5 shares common EA for every share of Funcom. Ok fine that is all well and good but now we get into true value, the true value is not there, at least not on the books, and Funcom holds no assets that EA would have any interest in, no liscenses, no proprietary software or processes, no patents. There is NOTHING that EA wants.
actually Im gonna edit this out I don't wanna disappear if Im right...
The minute two EA executives, Gerhard Florin and Michel Cassius, were placed on the Funcom Board of Directors, anyone with even a little iknowledge of business, particularly when it comes to merges/hostile takeovers, has already seen it coming. I even brought it up on the AO boards where of course everyone said "Oh, no. No way. Funcom will never do it!".
These guys go in, get stuff set up, then after the merge/takeover they will "leave" Funcom and rejoin EA.
-Letting Derek Smart work on your game is like letting Osama bin Laden work in the White House. Something will burn.-
-And on the 8th day, man created God.-
I don't have a clue about whether there is a possible merger or not.
I think its pretty easy to see where speculation about a merger would come from.
To me there was no benefit to Funcom in using EA as a "publisher". Unless shipping boxed copies of their game is that big of a market... It certainly doesn't help Funcom to have the game on Origin when you can simply order a digital version from Funcom. There is no CE of TSW... so unless you really just like having a box... well to me the deal makes little sense.
The "headstart" tiny text is more or less: Headstart is 4 days.. all pre-orders are guaranteed a minimum of 1 day of headstart. The sooner you order... the sooner you get in..
^^ which is pretty much directly from the TOR marketing campaign for headstart.
So I can see where the rumor would come from... I just think EA is in an odd financial situation to be looking for an aquisition at this time. In fact if TSW fell on its face.. it would seem more likely for EA to aquire Funcom.. than if it did really well.
I would see EA merging with or buying Funcom as negative in every way for Funcom's employees and games... I don't think things can get much worse for EA outside of bankruptcy which I'm sure some would see as a positive.
This is all of course... just my opinion.
It's a plus for EA as owning Funcom will give them a stronger presence in Europe, where the majority of Funcom's fanbase is. I tend to think that's the main draw. They really don't care if TSW sinks or swims, they just want the market.
-Letting Derek Smart work on your game is like letting Osama bin Laden work in the White House. Something will burn.-
-And on the 8th day, man created God.-