Mergers and Acquisitions
Ongoing coverage on Mergers and Acquisitions.
Latest coverage
EA reportedly lays off customer service, recruitment & safety staff ahead of $55 billion Saudi sale
Electronic Arts has reportedly conducted layoffs affecting customer service, recruitment, trust and safety, and IT teams in remote roles and its Hyderabad, India office. These cuts are occurring as EA nears its planned $55 billion sale to the Saudi Arabia Public Investment Fund. The company cited a need to adapt to changing fan needs as the reason for the proposed role changes.
Business and Finance
Tencent is reportedly in discussions to divest its stakes in several Japanese game studios, potentially incurring a loss. Meanwhile, Italy's second-largest independent game studio has successfully bought back its independence from Embracer Group.
Not content with Star Wars and Marvel, Disney reportedly considered buying James Bond before Amazon: "I figured…
Former Disney CEO Bob Iger revealed that the company considered acquiring the James Bond franchise before Amazon ultimately purchased it. Disney had previously acquired Marvel and Lucasfilm, and James Bond was on their list of potential acquisitions. Amazon's acquisition of the franchise, reportedly for $20 million, has led to discussions about potential spin-offs and a cinematic universe.
The grim industry summer continues as EA lays off staff ahead of $55 billion sale to Saudi Arabia, likely to soothe the…
Electronic Arts is reportedly laying off an unknown number of staff ahead of its $55 billion sale to Saudi Arabia's Public Investment Fund, which will hold a 93.4% stake. These layoffs, affecting teams like recruitment and customer support, are occurring before the acquisition closes, likely due to EA's significant loan debt. This follows a trend of industry layoffs, including Microsoft's recent actions after acquiring Activision Blizzard, and raises concerns about sportswashing.
Report: Tencent mulling exits from multiple Japanese studios
Chinese conglomerate Tencent is reportedly considering selling off minority stakes in several Japanese game studios, potentially at a financial loss. This move is part of a portfolio reassessment aimed at refocusing on user-generated content platforms. While investments in PlatinumGames Inc and FromSoftware are reportedly safe, the future of other studios like Marvelous remains uncertain.
Report: Tencent plans to exit investments in Japanese studios like Story of Seasons developer Marvelous
Tencent is reportedly considering exiting some of its minority investments in Japanese game studios, including Marvelous, as part of a global portfolio reassessment. This move aims to divest stakes where envisioned synergies have lapsed, though investments in companies like FromSoftware and PlatinumGames are expected to remain unaffected. Tencent has stated its continued commitment to the Japanese game market.
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.