Mergers and Acquisitions
Ongoing coverage on Mergers and Acquisitions.
Latest coverage
EA Reportedly Lays Off More Staff in US and India
Electronic Arts has reportedly conducted another round of layoffs affecting recruitment, customer support, trust and safety, and IT teams in the US and India. This follows previous workforce reductions, including those impacting the Battlefield and Skate development teams. The news comes as EA is reportedly in talks to sell itself to a consortium for $55 billion.
EA are making another round of layoffs as they seek "to better meet fans’ changing needs", according to reports
Electronic Arts is reportedly conducting another round of layoffs across various departments, including recruitment, IT, and customer support, to "better meet fans’ changing needs." The exact number of affected employees is currently unknown, but the cuts include remote roles in the USA and staff in Hyderabad, India. This follows previous layoffs affecting the Skate developers Full Circle and the Battlefield 6 team earlier this year.
Business and Finance
US Senators are urging the FCC to prevent the merger between Paramount and Warner Bros. Discovery from proceeding. Separately, Roblox has outlined its new payment structure for creators involved in brand integrations.
"Going independent meant taking a massive, massive risk": How Toys for Bob split off from Activision and Xbox…
Toys for Bob has successfully spun off from Activision and Xbox to regain its independence, a move described as a massive risk. The studio is now developing a new Spyro game, Spyro: A Realm Beyond, for PC, PlayStation 5, Nintendo Switch 2, and Xbox Series X, set to release in 2027. This independence allows Toys for Bob to return to making games they are passionate about, leveraging their expertise from the Spyro and Crash Bandicoot franchises.
Xbox is Punishing its Studios For Following Previous Orders – Report
A report indicates that Xbox is punishing its studios for following previous directives, leading to significant layoffs and studio closures. This follows major investments like the Activision Blizzard acquisition and the push for Game Pass, with some studios being criticized for prioritizing the subscription service over individual game sales. The situation has created an environment of fear and uncertainty, impacting game development.
Xbox’s Biggest Problems May Still Be Ahead
Xbox is facing significant internal challenges despite a recent showcase of upcoming games like Gears of War: E-Day. CEO Asha Sharma admitted to substantial financial losses and poor investment returns over the past five years, citing issues with funding franchises and inadequate infrastructure. Reports suggest impending layoffs and potential restructuring, including spinning off Xbox as a subsidiary or forming joint ventures, as Microsoft seeks to make its gaming division a sustainable business.
Games Inbox: Is Xbox worth saving?
This article discusses the uncertain future of Xbox, with readers expressing concern over potential studio closures and a lack of innovation. The piece contrasts Xbox's current strategy with past industry practices of companies like Electronic Arts and questions whether Xbox deserves to be saved given its perceived mismanagement and impact on developers.
SpaceX (SPCX) to acquire Cursor AI for $60 billion
SpaceX announced its intention to acquire AI coding company Cursor AI for $60 billion in an all-stock transaction. The companies have been collaborating on AI models, with plans to integrate them into Cursor and SpaceX's Grok Build. This acquisition follows SpaceX's recent initial public offering and aims to advance the company's artificial intelligence capabilities.
SpaceX is buying AI coding startup Cursor for $60 billion
SpaceX is acquiring the AI coding startup Cursor for $60 billion to enhance the capabilities of its artificial intelligence company, xAI. This move signifies a significant investment in AI development and integration within SpaceX's broader technological ambitions.
Microsoft-owned studios negotiate to avoid closures as CEO wants *more* monetization in games
Microsoft-owned studios are reportedly negotiating for independence to avoid potential closures amidst an Xbox 'reset.' CEO Satya Nadella is pushing for increased monetization in games, stating that Xbox has historically subsidized its entertainment. This comes as Microsoft faces layoffs and questions about the profitability of its recent Activision Blizzard acquisition.
Business and Finance
This article analyzes the reasons behind the unsuccessful $776 million acquisition of Rovio Entertainment, the company behind the Angry Birds franchise, by Sega. It delves into the business and financial aspects that led to the deal's failure.
Double Fine, Ninja Theory, and more Xbox studios reportedly at risk of closure
Microsoft's Xbox division is reportedly considering closure for several studios, including Double Fine and Ninja Theory, as part of a "reset" under new CEO Asha Sharma. While some studios like Double Fine are in negotiations to spin off, job losses are expected. This comes after a period of significant studio acquisitions by Microsoft, including Bethesda and Activision Blizzard.
Fox to acquire Roku for around $22 billion
Fox Corporation has announced a deal to acquire Roku for approximately $22 billion, with shares valued at around $160 each in a mix of cash and stock. The acquisition is expected to close in the first half of 2027. Fox plans to leverage Roku's 100 million global streaming households to distribute its content, including sports, news, and entertainment.
Morning Metaverse
Fox is set to acquire Roku in a $22 billion deal, according to The Hollywood Reporter. Separately, UK politician Starmer announced plans to ban under-16s from social media platforms.
Microsoft CEO says Xbox must become 'sustainable' as it reportedly considers major spinoff
Microsoft CEO Satya Nadella stated that Xbox must become a 'sustainable' business, implying it has been subsidized rather than profitable. This follows reports that Microsoft is considering spinning out Xbox into a standalone unit, potentially to sell it or find a partner. The company also aims to speed up development for major franchises like Halo and The Elder Scrolls, while addressing challenges like memory chip price increases driven by AI companies.
Chris Avellone says Xbox studios are increasingly concerned about layoffs
Veteran game designer Chris Avellone reports growing concern among Xbox first-party studios regarding potential layoffs, despite previous assurances. Employees are reportedly receiving conflicting messages about their future following recent leadership changes and a company-wide focus on efficiency and core franchises.
What went wrong with Sega's $776m acquisition of Angry Birds giant Rovio?
Sega Sammy's $776 million acquisition of Rovio has faced significant challenges, resulting in a $200 million impairment due to profitability falling below forecasts. Issues include difficulties integrating Rovio's technology and the mature state of the Angry Birds franchise in a rapidly changing mobile market with increased user acquisition costs and platform shifts. While Take-Two's acquisition of Zynga eventually proved successful, Sega's situation highlights the complexities and risks involved in acquiring mobile game companies, particularly when relying heavily on established IP.
Fox is buying Roku for $22 billion
Fox Corporation is acquiring Roku for $22 billion, encompassing its streaming devices and ecosystem. This significant merger and acquisition deal signals a major shift in the streaming services landscape.
Business and Finance
The Department of Justice has approved the deal involving Paramount, Skydance, and Warner Bros., which will place American Media under the control of the Ellison family. Separately, a former Community Manager for Destiny 2 claims that Bungie was on the verge of closure before recent events.
Before you place all the blame on Sony, former Destiny 2 CM says Bungie was 'very close to shutting its doors'…
Former Destiny 2 community manager Liana Ruppert stated that Bungie was on the verge of shutting down before its acquisition by Sony. Ruppert clarified that the studio's financial struggles predated the deal, making the acquisition an emergency measure. Despite Sony's $3.6 billion investment, the studio has faced challenges, including a significant impairment loss related to Destiny 2 and Marathon.
