Key Developments For Electronic Arts Inc
Electronic Arts Inc (ERTS.O) (Nasdaq)
Electronic Arts, Inc. Announces Purchase Of Social Game Maker Playfish
Electronic Arts, Inc. Announced the purchase of Playfish for $275 million in cash plus $25 million in equity retention arrangements. Playfish could reap another $100 million contingent upon the achievement of certain performance through 2011.
Electronic Arts, Inc. Comments On Q3 2010 Earnings Guidance; Issues Q4 2010 Earnings Guidance Above Analysts' Estimates; Issues FY2010 Guidance In Line With Analysts' Estimates
Electronic Arts, Inc. announced that for fiscal 2010 it expects GAAP net revenue is expected to be between $3.6 and $3.9 billion, non-GAAP net revenue is expected to be approximately $4.2 to $4.4 billion, GAAP diluted loss per share is expected to be between $1.20 and $2.05, non-GAAP diluted earnings per share is expected to be between $0.70 and $1.00 and the Company expects to be profitable in both third quarter 2010 and fourth quarter 2010. According to Reuters Estimates, analysts are expecting the Company to report EPS of $0.88 for third quarter 2010; EPS of $(0.03) for fourth quarter 2010; revenue of $4.2 billion and EPS of $0.89 for fiscal 2010. The Company also announced a plan to narrow its product portfolio to provide greater focus on titles with higher margin opportunities. This action will result in the closure of several facilities and a headcount reduction of approximately 1,500 positions, of which 1,300 are included in a restructuring plan. The majority of these actions will be completed by March 31, 2010. This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million.
Electronic Arts, Inc. Acquires Playfish
Electronic Arts, Inc. announced that it has acquired Playfish, a creator of social network games. Playfish will operate within EA Interactive, a division of the Company. The Company has acquired Playfish for approximately USD275 million in cash and approximately USD25 million in equity retention arrangements. In addition, the sellers are entitled to additional variable cash consideration, up to a maximum of USD100 million, contingent upon the achievement of certain performance milestones through December 31, 2011.
Electronic Arts, Inc. and IDW Publishing Launch Army Of Two and Dragon Age Comics
Electronic Arts, Inc. announced that it has signed a deal with IDW Publishing to expand two of its intellectual properties, Army of Two and Dragon Age, into comics under a new EA Comics imprint with IDW beginning in January. EA and IDW will launch monthly, ongoing series for both Army of Two and Dragon Age. Each issue will be published in print and distributed nationally at comic book outlets, with digital versions released for iPhone and iPod Touch and other emerging digital platforms. Under terms of the agreement, EA will fund and manage the creative aspect of the comic book series, while IDW will be responsible for printing and distribution.
Microsoft Corp. Says It Has No Plans To Acquire Electronic Arts, Inc.-DJ
Dow Jones reported that Microsoft Corp. does not plan to acquire video-game publisher Electronic Arts Inc., contrary to rumors circulating earlier that sent shares of Electronic Arts, Inc more than 7% higher. Microsoft Corp. said it has no plans to acquire Electronic Arts, Inc.
