Microsoft acquiring EA, world domination not far behind?

A meshing of titans is potentially in the making: While it’s currently being disputed, Reuters has reported that Microsoft is considering the acquisition of publishing conglomerate EA. While the report offers no particulars in terms of the timing of a bid for acquisition, or how such a bid would be received by EA executives, the implications of such an event are clear. A merger would give Microsoft exclusive access to a wide stable of critically acclaimed and best selling EA franchises, from Need for Speed to Medal of Honor to Madden. Moreover, Microsoft would have access to EA Partners, an offshoot company focused on building publishing relationships with small, independent developers. EA Partners is responsible for putting out such titles as BrĂ¼tal Legend.

But, you can’t believe everything you read. While an EA acquisition would seemingly be a boon for the software company, numerous parties, including Microsoft itself, are denying the report. Microsoft spokesman David Dennis stated earlier today that “There is no truth to this rumor” and that Microsoft “have no plans to purchase EA.” Furthermore, Cowen analyst Doug Creutz stated in a research note that an EA acquisition simply would not make any financial sense for Microsoft. He writes that because EA gets 30% of its revenue from Sony and Nintendo consoles, going exclusive with Microsoft would be fiscally devastating for the publisher.