Disney is looking to expand its gaming business and potentially acquire Electronic Arts (EA) to achieve this goal. While Disney has primarily focused on licensing its popular intellectual property (IP) to other studios for game development, there is internal pressure from senior executives to explore a more transformative approach. EA has been identified as a potential acquisition target, although Disney’s CEO Bob Iger remains noncommittal about any major deal.
This is not the first time Disney has been linked to a potential acquisition or merger with EA. Reports from May 2022 revealed discussions between EA CEO Andrew Wilson and Disney about a “more meaningful relationship” beyond licensing deals. However, Wilson later expressed opposition to the idea, and the talks quieted down. With Microsoft’s impending acquisition of Activision Blizzard, the possibility of major mergers is back in the spotlight, making a deal with EA a logical move for Disney.
Since the closure of Disney Interactive Studios in 2016, Disney has relied heavily on external partners to develop games based on its IP. EA has been one of Disney’s closest partners in the gaming industry, even after Disney ended EA’s exclusive hold over major Star Wars titles in January 2021.
While Disney could continue working with external developers, acquiring EA would enable the company to develop its own games in-house. The success of Respawn’s Jedi: Fallen Order and Jedi: Survivor has already led to a third title in the works, and EA has additional Star Wars projects as well as Iron Man and Black Panther games in development through licensing deals. This makes an acquisition appealing to Disney executives.
Another aspect to consider is EA’s strong presence in the sports genre, with popular titles like EA Sports FC and Madden. This could lead to broader integrations with Disney’s ESPN brand.
An acquisition of EA by Disney would not hinder Disney’s ability to continue partnerships with other developers, such as Sony’s Insomniac for the Spider-Man franchise. It would also allow EA to continue developing games for all platforms. While a deal may not be imminent, it is worth keeping an eye on if Disney decides to bring game development in-house.
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Source: DOTESPORTS
