There was rumor in the market that Microsoft may acquire Electronic Arts. Both the companies denied any such plan and issued a press note. EA views Microsoft an important partner. EA produces many titles for Xbox and it has good relations with Sony as well. Many analysts were thinking if Microsoft acquires EA, it would be good move for the company and it would be able to control the video game market and its share. The stock price for EA was soaring high with the rumors. The news of denial has tumbled the stock price 3% down for EA. EA is a profit making publisher and its games are sold widely in the market. There were many attempts and offers from many well known companies in the past.
EA has maintained that it is fine without the acquisition. Largely investors have shown faith in EA. But when you have an hostile bid, the history has seen many such instances when investors went to other company. EA may be lucky so far for not having the attempts of hostile take over. EA has very strong market for its sports related games and it has produced some of the finest games in the industry. For now, EA is busy with the new project which is expected to be released very soon. Microsoft may treat the relationship with EA as winning combination.
Xbox sales is good this year so are the profits for EA. Many video game titles are bundled with Xbox and are sold in good numbers world over. There is no take over for now, it is intense and close partnership between the two market leaders. Sony watched the developments with interest because it gets the gaming titles for EA. If news of acquisition would have been true then it must have caused serious problems for Sony. Sony would have been forced to buy the content from Microsoft. For now the business goes as usual with plans for the future.