Electronic Arts Could Be Eyeing Merger With Media Giant

In today’s edition of the Front Office Sports newsletter, we’re taking a look at Electronic Arts’ reported plans to sell or merge with a major player in the entertainment industry.

EA Could Merge With Media Giant

Electronic Arts is reportedly looking to sell or merge with an entertainment conglomerate.

Several outlets indicated that Andrew Wilson, the video game company’s CEO, recently held discussions with NBCUniversal about a takeover, but the negotiations — which lasted several weeks — fell through because of price and structure disagreements.

That isn’t stopping EA from looking elsewhere. The company is reportedly holding discussions with other giants like Amazon, Apple, and Disney, and if a deal comes to fruition, wants Wilson to stay on as boss.

The news comes amid other major changes to EA’s games.

• The company ended its 30-year partnership with FIFA after the pair failed to reach an extension agreement — the duo will release their final collaboration this year. 
• Without FIFA, the series will be called EA Sports FC and will not include World Cup and other FIFA-controlled events. EA Sports FIFA had more than 150 million accounts during FY2022.
• In EA’s earnings report earlier this month, Wilson said developer DICE will be “rethinking the development process from the ground up” for “Battlefield 2042,” adding that EA will take “a long view” on the franchise.

‘It’s in the Game’

EA wouldn’t be the first video game company to be taken over by a media giant. Earlier this year, Microsoft announced plans to buy Activision Blizzard for $68.7 billion. Shortly after, Sony said it planned to purchase gaming studio Bungie for $3.6 billion.

Conversation Starters

• All five ownership groups bidding for the Denver Broncos reportedly submitted proposed amendments to the sale contract last week after their lawyers were asked to mark up the agreements before any exclusive negotiations are determined.
• EBay is launching an NFT platform with help from The Great One. The longstanding resale and auction platform has partnered with NHL legend Wayne Gretzky on its first NFT collection.
• Video games accounted for 32% of Tencent’s total revenue in Q1 2022. The Chinese tech conglomerate generated $21.3 billion during the quarter, an 8% increase year-over-year.
• ESPN’s Friday coverage of the PGA Championship drew the largest 2nd round audience since 2009. The network’s telecast from Southern Hills averaged 2.1 million viewers, up 47% from last year.
• Adidas has officially unveiled its upgraded headquarters in Portland, Oregon. The facility, named “The Village,” features a sustainable soccer pitch, rooftop lounge, and other amenities.

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