Disney has mostly focused on licensing out its IPs to be adapted as video games but apparently, that’s not enough for the executives as they have suggested the CEO to expand Disney Gaming with potential acquisitions.
Disney is considered a behemoth in the entertainment industry but hasn’t been able to make a name for itself in the gaming industry. Disney’s CEO is allegedly getting encouragement from its internal leaders to expand Disney Gaming with the acquisition of video game companies such as Electronic Arts, reports Bloomberg.
Executives Want Disney Gaming To Be A Giant in the Industry
This new report comes from Bloomberg and is centered around Disney CEO Bob Iger’s second stint with the company after the departure of Bob Chapek and the company’s struggles. The report suggests that Bob Iger’s deputies are encouraging the CEO for a “bolder transformation from gaming licensee to gaming giant” and reportedly trying to pull it off through the acquisition of companies like EA.
The report is said to have gathered information from anonymous former and current employees at Disney and reveals how Bob Iger is afraid of taking any big decisions and is cautious with Disney Gaming plans. The report reads,
Iger’s deputies are pushing him to consider a bolder transformation of Disney from gaming licensee to gaming giant through, say, an acquisition of Electronic Arts. But, as with everything else, he’s been noncommittal.
The report also states that Bob Iger has been “noncommittal” so the chances of Disney Gaming doing something big are still far. However, acquisitions and mergers have been very common in the industry with major names like Bungie and Bethesda already snagged up and Disney acquiring EA wouldn’t come as a surprise if it happens in the future.
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This isn’t also the first time that Disney has been linked with EA’s acquisition or merger. There were rumors back in May last year that EA’s CEO Andrew Wilson is looking for a more meaningful relationship with Disney and not just licensing deals. Amazon and Apple’s names were also raised as potential contenders for EA but these were quashed by CEO Wilson and nothing has been heard so far.
How Can Disney Gaming Benefit From EA Acquisition?
Disney, if moves for an acquisition of Electronic Arts, would have access to several major video game franchises like EA Sports FC, Madden NFL, and other games from EA that use micro-transactions. Disney Gaming could also acquire studios under EA Entertainment such as BioWare and Respawn.
The company would also get access to EA’s multiplayer titles like Apex Legends and Battlefield, and popular single-player games like Dead Space and Star Wars: Jedi Survivor. Electronic Arts also looks to set itself up for acquisition or merger by dividing its studio into two divisions, EA Entertainment, and EA Sports, making it easy for those looking to buy.
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Ubisoft is also said to be on Disney’s radar for a potential acquisition. There are other big publishers from Japan such as Capcom, Square Enix, Bandai Namco, and more that could also be potential acquisition or merger targets. However, pulling off acquiring a Japanese gaming company wouldn’t be easy with the restrictions in place that make it hard for foreign companies to acquire.
Disney has been in the video games industry for a long time now with game releases like Epic Mickey and others which were quite popular and came from Disney Interactive Studios, which the company shut down in 2016. As for Disney Gaming’s prospects in the industry CEO Bob Iger doesn’t seem very excited for the expansion of the plans. Nonetheless, if Disney does expand with EA and instead of providing licenses, builds in-house games, it could rake in profits.
What are your thoughts about this report on the expansion of Disney Gaming? Do you think Disney should go for the acquisition of EA? Let us know in the comments!
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