Electronic Arts Inc. (ERTS) Message Board

  • system_trap system_trap Jun 30, 2000 8:24 AM Flag

    EA buying EIDOS?


    Eidos gains on white knight speculation

    Infogrames comment, updates share price)
    LONDON, June 30
    (Reuters) - Shares in British computer game maker Eidos Plc
    (LSE: EID.L - news) gained 12 pence on Friday after a
    report that Electronic Arts might step in as a buyer to
    thwart a hostile bid from France's Infogrames
    Entertainment .

    Its stock stood at 457 pence at 1050

    Eidos, the troubled creator of cyberspace heroine Lara
    Croft and her Tomb Raider games series, said last week
    it was in early stage talks that might lead to a

    The company has struggled this year and issued a
    series of profit warnings, reflecting problems in
    adapting to the next generation of gaming

    "We are looking at the company, but that is as far as
    it goes," a spokeswoman for Infogrames told Reuters.
    "There are no negotiations currently under

    The Financial Times said Eidos had held preliminary
    talks with both Infogrames and EA of the United States
    and its board would meet on Monday to decide whether
    to sell.

    "The management is thought to favour
    a quick sale with EA," it said.

    confirmed that Morgan Stanley Dean Witter was advising it
    along with house broker, Dresdner Kleinwort

    Havas Interactive, a unit of Vivendi whose name has
    also been thrown into the rumour mill, has
    "categorically denied" reports it was in talks to buy

    Eidos shares, which fell as low as 260 pence a month
    ago, rose above five pounds earlier this month on
    takeover speculation.

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    • I didn't say they were going to be taken over! I
      wasn't posting a rumor. I just said that they should be
      taken over. Big difference. I think it makes sense for
      Yahoo to buy them and that maybe that is why the stock
      acts so well. It sure isn't trading up because of
      earnings expectations.

    • Jose Rasco, H.C. Wainwright and CO, appeared on CNBC recently. He commented on his market views and his stock picks.
      ERTS buying DODV

    • I've noticed that you are getting a tad defensive lately. You might want to consider talking with someone about that......"speak to the hand", if you know what I mean.


    • it was going to be easy :-)

      Missed the board over the long 4th weekend. No access to computer. I see I was thoroughly thrashed by all while I was away! Life is good.

    • in between spins, there actually is quite a bit
      of useful info in your posts.

      Judging by your
      reaction, i'd guess that you are really feeling it. I dont
      wish anyone harm, i just want good information. Im
      sorry if you've lost money on this position.

      only commented because you ridiculed a guy for posting
      a rumor, days after you posted a link to one of the
      more absurd (although interesting) rumor-filled
      messages i've ever seen. You can't post rumors then
      lambaste others for doing the same.

      Heres a who
      wants to be a millionaire question for you...what do
      you call a guy who criticizes someone for posting a
      rumor, after posting his own rumors? I believe the word
      is hypocrite. Is there a name for someone who calls
      others hypocrites when they themself are one? Lets make
      one up: a rabster.

    • just because you don't like the message. So I
      posted a link from a rumor site, did I present it as
      fact? No. In the last earnings conference call EA
      admitted the online launch was slipping, and I posted a
      link to comments from a current or ex employee who
      expands on that. Is this a case of 2+2=4? Of course it's
      probably not that simple and you should do your due
      diligence. But it is relevant.

      You're such a
      hypocrite Marlon. One guy posts rumors about takeovers and
      you're fine with that, another posts a rumor which is
      negative and you jump to all these conclusions in your
      riposte. If you want to see everything in a rose tinted
      fashion then I suggest you limit your research to the
      ERTS PR. And as for spinning, you claim I'm the person
      saying the things in the post (err, that would be the
      poster in the link, suprisingly enough), and then you
      describe the truth about my position when you know the
      truth is you know nothing about me.

      The people I
      feel sorry for aren't the shorts losing money but the
      longs with such low self-esteem they come out of the
      woodwork every time the stock spikes with their "Shorts
      getting crushed! You're so stupid and I'm so smart,
      ah-ha-hah!" messages. It's so immature. Everyone here has the
      same goal, to make money. On either side of the fence
      or on both sides, does it really matter? Are you the
      Perfect Trader (TM) who's never mis-timed the market and
      never bought anything that dropped? (next George
      Clooney movie? "He's right in the middle of three bear
      markets...", "It's where the money is!"). But you feel the
      need to prove yourself smarter on every spike. Do you
      visit old folks homes and laugh at them for not being
      as strong as you? Do you jog past disabled people in
      the street and laugh at them for not being as fast as
      you? What would you do if nsthil or raph admitted they
      were covering for a loss, mmm let me guess, send a
      post about how smart you are?

    • someone elses rumors? This is the guy who posts
      links to disgruntled ex-employee web sites! This is the
      guy who states that ea management is full of coffee
      and Dorito guys and has no gaming background. This is
      the guy who comments that ea.com wont debut in july
      (talk about a rumor!).

      The truth is this is a
      guy who is losing money on his short so he scours the
      web looking for anything to make him feel better
      about his investment. He tries like hell to tie in
      anything he can to feel smarter about his choice of
      shorting this stock. Sorry rab, but the truth is, you
      shouldnt have shorted ea, you'd be much better off and not
      in the red. Yes, you can claim to have cost averaged
      (like all the shorts always do) up so that you arent
      down much, but if you've done that all the way up, you
      have extended yourself, and until ea takes a dip, you
      not only raise your risk, but take money from other
      potential investment gains, to try and stop the bleeding. I
      still havent heard any of you guys admit that you were
      wrong when you started shorting back in the high
      fifties and low sixties. I enjoy the info you guys post,
      as i grant that you are knowledgable and watch your
      investments closely. The spin though, is sometimes downright

    • It's not as official a source as Bloomberg but
      it's related:

      'Average of 50 shares per
      (EA.Com) employee, vesting over three years. And they
      can't even sell in the first year.'

      statement is true. Ask anyone who has quit since the grant,
      in either disgust or embarassment.

      headcount swell beyond 400 employees worldwide. The core
      membership of EA.Com has all but departed over the last
      year. Why? Start with expenditures into the tens of
      millions for failed tools such as BroadVision (aka:
      FraudVision) and reliance upon outside 'experts' like the
      lifesucking parasites known as Andersen Consulting (who
      earned a sweet $100k per month to construct a mountain
      of documentation for a system that never worked).
      Matched to an executive staff virtually devoid of gaming
      knowledge or experience (last gigs for some of the top
      feeders: Wired, Gordon Biersch, Sara Lee, Frito-Lay).

      Don't get me wrong, there's nothing better than a good
      brew to chase down a mouthful of Doritos. I just don't
      see how it relates to compelling Internet/PC/Console

      Come July when EA.Com debuts (ha!) the
      evidence will be quite clear. The 350 odd remaining
      employees can look forward to cashing in their 50 shares
      come 2004. Hell, after taxes you might have enough
      left to pick up a copy of Motor City (presuming it has
      shipped by then).

      Anyone thinking that the AOL
      marriage will reap rewards? One word:


    • Doesnt it sound as if ERTS is right on the ball
      with this EA.com thing. NOT!!!

      Electronic Arts
      to Unveil Web Games by End of July (Update1)
      Greg Chang

      Redwood City, California, June 29
      (Bloomberg) -- Electronic Arts Inc., the No. 1 video-game
      maker, plans to introduce in July a test version of an
      Internet games site to avoid missing a Sept. 1 deadline
      that may cost it a contract with America Online Inc.

      Electronic Arts in November signed a 5-year, $81 million
      agreement to provide games to America Online. If Electronic
      Arts fails to unveil the games by Sept. 1, America
      Online can cancel the agreement, according to a U.S.
      Securities and Exchange Commission filing. Electronic Arts
      already missed a June 1 deadline, forcing the company to
      pay an annual fee to America Online sooner than
      scheduled, the filing said.

      Redwood City,
      California-based Electronic Arts is looking to boost sales and
      profit by introducing online games for sports fans and
      avid gamers. The company also is developing simple
      parlor games such as cards and darts.

      company will unveil additional features and games in two
      phases by the end of November, said spokesman Jeff

      Electronic Arts, the maker of games such
      as ``Madden NFL'' and ``SimCity,'' earlier this year
      created a separate class of stock to track the
      performance of the company's online games unit, EA.com.

      Tracking Stock

      America Online purchased 10 percent
      of EA.com's shares for $18.7 million, as well as a
      warrant to acquire another 5 percent of the shares for
      $1.3 million. The warrant can be exercised for $40

      If Electronic Arts fails to sell shares
      that track EA.com to the public within 12 months,
      America Online can exchange the EA.com shares for regular
      Electronic Arts shares, the filing said.

      Online will share in revenue EA.com collects from games
      on Internet sites or online services run by
      companies other than America Online. Electronic Arts agreed
      to spend $15 million marketing the games on America
      Online over the life of the contract, the filing said.

      EA.com has about 300 employees. Some 20 percent of the
      workers developing the site come from consultants such as
      Andersen Consulting and Proxicom Inc., the filing said.

      EA.com had a loss of $54.6 million on sales of $20.9
      million in the fiscal year ended March 31.

      Corp. owns 5 percent of EA.com shares after selling
      online games developer Kesmai Corp. to Electronic Arts.

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