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26. Re: EA Partners to Close? Apr 25, 2013, 17:42 ASeven
Creston wrote on Apr 25, 2013, 16:31:
Beamer wrote on Apr 25, 2013, 13:18:
At this point, the only thing that probably would make sense for EA to do is find a way to go private.

Is that even feasible for them, though? I doubt they have anywhere near enough cash to buy themselves into the majority, and otherwise it just means they'd have to get a major investment venture to buy their majority stake and they just become beholden to said investment capitalists rather than the shareholders at large.

They are fucked either way. Their stock prices have plummeted and have not recovered since but, as you say, if they go private they will need to borrow such an insane amount of capital to buy themselves into a majority position that they might as well shut themselves off and save a lot of trouble.

And the beauty of all of this is that they have nobody to blame but themselves. Honestly, I believe we're starting to see the first steps of the publisher crash as publishers suddenly realize that they cannot support their business model for much longer and see themselves starved for capital which they cannot afford or create.
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