Disney may be one step closer to buying EA

In recent years, the Disney faced a series of challenges that undermined its image as an unshakable entertainment empire. The arrival of Disney +, your own service streaming, promised to be a great game changer but, in the long term, the low audience and growing competition in the market, brought to light the giant's vulnerability. Furthermore, it is inevitable to mention the pandemic as an impact factor — including in the theme park sector — which forced the company to make adjustments as necessary.

However, it seems that the pressure is increasing to find bold solutions and one of the options that has gained prominence is the acquisition of one of the largest game developers in the world. Speculation about the possible purchase has gained strength, leading to questions about how this strategic move could be the key to revitalizing the company amid the challenges it faces.

The crisis at Disney

This crisis in Disney had been happening little by little, but it deepened with the below-expected performance of its main investment: the Disney +. Productions that were considered the company's flagship, such as series set in the universe of Star Wars e Marvel, were unable to achieve the same level of success and engagement as years ago. These disappointing results not only impacted the company's revenue but also shook investor confidence.

Known for their ability to captivate audiences of all ages, films from Pixar , the Inside Out e Soul also failed to generate the buzz expected, leaving the company in a delicate situation. The low audience of some renowned productions on the platform, combined with an increase in competition with services such as Netflix e Amazon Prime Video, led the giant to face a challenging scenario in this sector. But according to experts, the biggest reason for the problems comes down to the creativity crisis.

Some strategies have already been announced by the CEO Bob Iger, in addition to some of his own confessions regarding the more specific reasons why the company got to where it is today. According to a corporate report, the Disney would have had a significant financial loss of US$460 million, the equivalent of more than R$2,2 billion at the current exchange rate, during the period between April and June of this year.

Expectations about Bob Iger

The initial period in which Bob Iger He served at the helm of the company and was widely recognized as one of the most successful in business history. During his tenure, he orchestrated strategic acquisitions of companies such as Pixar, Marvel Entertainment, Lucasfilm e 21st Century Fox. Iger also delinked these powerful sources of intellectual property from the company's catalog. Netflix, directing them towards the creation of Disney +, which, impressively, gained 10 million subscribers on the first day of launch.

Furthermore, under his direction, he introduced significant initiatives such as the launch of new cruise ships and the opening of a theme park in China. When he ended his tenure as CEO in early 2020, the Disney saw its market value grow four times what it was when Iger took over leadership of the company in 2005. However, after the transition, he left the CEO position to his successor, Bob Chapek, whose performance did not match Iger's and coincided with a difficult phase for the company.

But once the board finally made the decision to remove Chapek from his position at the end of 2022, Bob Iger He returned to the role of CEO as a true hero, being widely considered the most qualified person for the position. Jeffrey Katzenberg, former director of the studios division of Disney e co-founder da DreamWorks, emphasized at that moment that, of all the people in the world, Iger was the option with the greatest probability and ability to effectively address the challenges facing the company.

For Bob, leaving Disney was like a father abandoning his favorite child. The good news is that Dad is back, but the bad news is that the house is on fire.

Current Disney executive close to Bob Iger

The problem is that a lot of work must be done now.

The pressure on buying EA

Among the many strategies and plans about what could be salvation, among the company's own corridors, rumors were created about a bold transformation being discussed. Once the Disney is also part of the group of game licensing companies, it could now become a giant in this industry. The paradigm shift would come through the acquisition of a gaming giant: Electronic Arts (EA). According to Bloomberg, people close to Bob Iger They said that control of a large publisher like this would be the only way to reverse the entire situation.

A possible acquisition like this would open the company's doors to a vast world of opportunities. The titles of EA Sportsas the FIFA e Madden NFL, generate billions in annual revenue, mainly through microtransactions. This substantial revenue could become an integral part of the company's operations. Disney, significantly increasing its presence in the gaming sector. Furthermore, this strategy could perfectly align with the ESPN, pillar of the megacorporation itself. The union between sports games and sports coverage itself could result in an advantageous strategic partnership, creating opportunities for promotion and mutual benefits.

Another alternative to purchasing EA would be to consider purchasing some of the studios that are part of the label EA Entertainment, which includes big names like BioWare e Respawn. The latter, for example, is the studio behind one of the licensed games from Star Wars more popular: Star Wars: Jedi Fallen Order.

According to recent information, the Disney I already had the idea of ​​resorting to EA with the intention of investing in new games in the Black Panther and Iron Man, which, according to them, could generate satisfactory financial results. By doing this and thinking about acquiring additional talented studios, the company could further strengthen its presence in the gaming industry and expand its portfolio.

In summary, the future strategy in relation to the universe of games is a reason for great speculation, but it is clear that the company is exploring the best ways, especially considering that this industry has been playing an increasingly important role. According to Bloomberg points out, the vice-presidents of Bob Iger are pushing for a bolder change in the company’s strategy Disney, seeking to transform it from a company that licenses its intellectual properties to a giant in the games market.

As regards Electronic Arts (EA), the publisher is taking steps to prepare for a possible acquisition by reorganizing its studios into two distinct divisions, EA Sports and EA Entertainment. This would make it easier for a buyer to acquire a specific part of your business.

However, the possibility of entering the gaming market is still open, as Iger continues to explore ways to solve the challenges facing the Disney faces and has not made any definitive decision. It must be remembered that, for example, although the Disney Illusion, developed by Diala Studios was released, the game received mixed reviews. It seems that the most prudent approach is not to rush things and not to involve a full commitment yet.

But amidst so many pros and cons, one thing is certain: the much talked about acquisition strategy would transform the Disney in a AAA game company, that is, being able to produce games on a large scale, with substantial budgets and a vast marketing strategy. If this change is implemented in the future, the company would start to compete directly with other major companies in the AAA segment, such as Microsoft, Sony, Nintendo, Square Enix, Ubisoft, Bethesda e Rockstar. To sum up, it could very well become a great power again or, at least, this would be a big step towards finally getting back on its feet.

In any case, there is still a long way to go in the search for effective solutions.

Disney's relationship with games

It is important to state that, although it has never been his strong point, the Disney has a considerable history in the gaming industry, stretching back to the days of Disney Interactive Studios, responsible for classic titles such as Disney Infinity e Epic Mickey.

But currently, as already understood, the company's presence in this world is no longer as frequent as in the past. However, to make it official and still prove that the interest may not be something so recent, during the D23 Expo 2022, an indication of resuming work in this area was observed. At the same event, some announcements such as Disney & Marvel Games Showcase were done, which drew attention to us to keep an eye on the next steps.

Sean Shoptaw, senior vice president da Walt Disney Games, even shared in an interview with GamesIndustry that the idea was never really to move away from games, but rather to rethink and reformulate your strategies. He also took the opportunity to highlight that the Disney would be open to partnerships with the best talents in the industry, with the aim of raising the quality standard of products.

If we could partner with the best people in the world, the best developers, the best publishers, to create experiences across the world and across all platforms and raise the bar for what we're doing from a product perspective... we would find that can be very interesting.

Sean Shoptaw, Senior Vice President, Walt Disney Games

Second Luigi Priore, vice president da Disney & Pixar Games, the aim has always been to diversify the game catalog of Disney for all types of players.

Contrary opinions

Despite everything, it seems that this combination would not be a good idea in the eyes of consumers. According to the acclaimed magazine Forbes, the idea could have somewhat negative implications for practically everyone involved.

Even with the remarkable history of Disney in game management over the years, this does not appear to be a sufficiently plausible argument to guarantee good results. Still according to opinions, the intention of the Disney with the purchase, it could be assimilated into your history with the Lucasfilm, Marvel, among others. If there were the possibility of EA operate independently, perhaps the situation could be seen with different eyes. Apart from the Disney would begin venturing into an industry that has never been their focus and therefore has limited understanding. In short, it would be very risky.

However, if we consider the entire purchase from the point of view of EA, who has already admitted that he sees no obstacles, would mean less power. The publisher would become subject to the decisions of the megacorporation and this could probably result in a greater focus on games developed for its own universes. Disney, Ou seja, Star Wars e Marvel, for example. According to Forbes, that wouldn't be all bad, as successful franchises would still have a chance, as would sports games and titles like Apex Legends. However, something to consider is the possible dissatisfaction of many game developers, who would consequently be becoming “subordinates” of the game. Disney.

Furthermore, when it comes to players, the acquisition could also result in much more limited development in the future, especially when talking about the Marvel. Although this may not affect characters like Wolverine ou Spider-Man, which are from Insomniac Games, some other stories would harm themselves in this sector. Many of the partnership's projects Disney-Marvel, in general, already have planning years in advance. The purchase of EA could disrupt all these plans in some way. An example of this is that even games that have not gained as much popularity, such as Guardians of the Galaxy e Avengers, they still received some praise, and in a case like this, if it were to happen, they might not even exist.

In conclusion, it is worth remembering that the information about the possible future acquisition came from a report from Bloomberg, where supposedly, executives from Disney would be really pushing Bob Iger to invest in the gaming area and consider the acquisition. These plans would also have been discussed last year, but it is worth highlighting that the EA did not resort only to the company, having also shown interest in NBCUniversal, Apple e Amazon.

See also: Will Apple buy Disney? Rumors increase

See more: MCU and Star Wars: what is happening with Disney+ productions?

Sources: IGN, EARTH, Forbes, Bloomberg

reviewed by Glaucon Vital in 16 / 10 / 23.