French Government fights back in EA/Ubisoft share takeover

The thing is though there will always be competition. It might not be as easy to start a game company as it was during the early years (which I think is a good thing) but it's still possible.

EA bought about $90 million dollars worth Ubisoft shares which is about the same as what the founders still own. Let's say that EA buys Ubisoft and in the process the stock goes up and the Ubisoft founders walk away with say $140 million. There is nothing stopping them from going across the street and opening up a new company once their non-complete clause is up. $140 million is more than enough to deal them back into the game. I guarantee it's a better start than they had the first time. Plus they'd have total control again so EA couldn't take them over. I admit that this scenario is simplified but you get the idea.

You are phrasing it like there are a finite number of publishers and once EA takes them over nothing else can take their place. That is simply not the case. Even if it was though antitrust laws would come into play and EA would get broken up and everything would start over again. That how business works. It is designed so that there will always be competition.

 

well, if EA won't take little compagnies that don't have the cash to afford pills of UBI, they'll just die because of the power of electronic arts.


i always thought this compagny could invade the market, i just never wanted them to take so much place...with so much crap! i mean, c'mon! try to work on your (AAA)+(200*) series a bit! i don't love sports on video game consoles, but you could make your fans happy with a revolution, not a graphical evolution.

 

It's not illegal for the French Government to intervene at all. They can block a stock trade if it is deemed unfair or unjust or otherwise infringing on any laws. In this case, if EA purchases 1/5 of Ubisoft, they could be deemed as creating a "monopoly." In the US at least, the top 3 third party publishers are probably EA, Activision and Ubi. Thus, giving EA a vast advantage and price setting over the market.