Disney Could Become a Gamedev Giant; Executives Urge CEO to Acquire Big Publisher
According to new rumors, Disney executives are expected to press the CEO on the issue of expanding the corporation's operations in the video game category. An acquisition of one of the big publishers is said to be considered.
The days when the Disney corporation was Wall Street's golden child are long gone. In August, the company's shares reached the lowest level in nine years. It still earns large amounts of money, but in recent years the profits have fallen sharply and investors have begun to lose faith in the company's continued growth. However, ideas are emerging to change this situation.
- As reported by Bloomberg agency, the corporation's directors are said to be putting pressure on the CEO, Bob Iger, regarding the acquisition of Electronic Arts. This would instantly make Disney a giant of the game industry.
- According to these reports, Iger has so far not made a decision on the matter. Even if he decides to expand Disney's game development business, he does not necessarily set his sights on buying EA specifically.
- Disney used to have a number of in-house development studios, but over the past decade (during Bob Iger's previous presidency) they were gradually shut down, until a wave of layoffs swept through the company in 2016 and Disney Interactive Studio ceased operations altogether.
- After the closure of its own game division, Disney focused on licensing its brands to other companies. This gave us such productions as Marvel's Avengers, Marvel's Guardians of the Galaxy, Star Wars Jedi: Fallen Order, Star Wars: Squadrons or Disney Dreamlight Valley. This approach is much less risky for the company, but at the same time limits the earnings potential.
- Electronic Arts has a number of popular games licensed on Star Wars, and is currently working on, among others Star Wars Jedi 3, Black Panther: The Game and Marvel's Iron Man. Therefore, the company seems a natural candidate for acquisition by Disney.
According toBloomberg, Disney is also said to be considering selling some of its television businesses, including ABC to Nextstar Media Group for $10 billion. In addition, Disney-owned sports station ESPN has signed a partnership agreement with casino management company Penn Entertainment. This is a major development, as until now Iger has blocked such contracts, arguing that the Disney brand, associated with entertainment for children and families, could suffer from ties to the gambling business.
