Post by Segaman on Jan 2, 2005 16:58:58 GMT -5
(Reuters) - The video game industry is ripe for consolidation, as companies like Electronic Arts Inc. move to take advantage of rising production and marketing costs, the Wall Street Journal reported on Wednesday.
Electronic Arts, the world's largest video game publisher, earlier this month said it was buying almost 20 percent of French video game maker Ubi Soft Entertainment, fueling speculation it might bid for the whole company.
One portfolio manager told the newspaper that Electronic Arts is in a good position to make a "sizable acquisition or two", considering the company currently has $2.5 billion in cash and cash equivalents.
Other companies that could be in play -- either as acquirers or takeover targets -- include game publishers such as Activision Inc., THQ Inc., Midway Games Inc., the UK's Eidos Plc and Japan's Namco Ltd. and Capcom Co. Ltd., according to the Journal.
It also reported that Microsoft Corp. and Japan's Sony Corp. could be involved in the consolidation, as well as media and Internet companies such as IAC/InterActiveCorp, Viacom Inc. , Walt Disney Co. DreamWorks Animation SKG Inc. and Time Warner Inc.
Electronic Arts, the world's largest video game publisher, earlier this month said it was buying almost 20 percent of French video game maker Ubi Soft Entertainment, fueling speculation it might bid for the whole company.
One portfolio manager told the newspaper that Electronic Arts is in a good position to make a "sizable acquisition or two", considering the company currently has $2.5 billion in cash and cash equivalents.
Other companies that could be in play -- either as acquirers or takeover targets -- include game publishers such as Activision Inc., THQ Inc., Midway Games Inc., the UK's Eidos Plc and Japan's Namco Ltd. and Capcom Co. Ltd., according to the Journal.
It also reported that Microsoft Corp. and Japan's Sony Corp. could be involved in the consolidation, as well as media and Internet companies such as IAC/InterActiveCorp, Viacom Inc. , Walt Disney Co. DreamWorks Animation SKG Inc. and Time Warner Inc.
