Analysts agree: EA’s purchase of BioWare and Pandemic is a wise move

It’s the general consensus among analysts that Electronic Arts‘ acquisition of BioWare and Pandemic Studios was a wise move. One of the more popular analysts from Wedbush Morgan, none other than Michael Pachter, also predicts that the US$ 800 million purchase will pay off.

With the purchase of the two developers, Electronic Arts boosts their already solid reputation with “several games in development, six owned franchises, and 800 quality employees.” Pachter believes that EA “has finally demonstrated the thinking behind its huge cash accumulation” with the purchase. (EA has nearly US$ 3 billion in cash.)

Pachter continues that if the companies continue with the quality of their past performance then “EA will likely achieve its goal of US$ 300 million in annual revenue.” Not bad, not bad at all. Colin Sebastian of Lazard Capital Markets and Todd Greenwald of Nollenberger Capital Partners demonstrate the same confidence in EA, if not as strongly as Pachter does.

One analyst though, Ben Schachter from UBS, believes that we’ll have to wait and see whether or not the acquisition was a good move. While he does agree that the acquisition was a good one over the long term, he’s concerned that the steep price may have some negative effects on the company’s current financial state.

It’s the general consensus among analysts that Electronic Arts‘ acquisition of BioWare and Pandemic Studios was a wise move. One of the more popular analysts from Wedbush Morgan, none other than Michael Pachter, also predicts that the US$ 800 million purchase will pay off.

With the purchase of the two developers, Electronic Arts boosts their already solid reputation with “several games in development, six owned franchises, and 800 quality employees.” Pachter believes that EA “has finally demonstrated the thinking behind its huge cash accumulation” with the purchase. (EA has nearly US$ 3 billion in cash.)

Pachter continues that if the companies continue with the quality of their past performance then “EA will likely achieve its goal of US$ 300 million in annual revenue.” Not bad, not bad at all. Colin Sebastian of Lazard Capital Markets and Todd Greenwald of Nollenberger Capital Partners demonstrate the same confidence in EA, if not as strongly as Pachter does.

One analyst though, Ben Schachter from UBS, believes that we’ll have to wait and see whether or not the acquisition was a good move. While he does agree that the acquisition was a good one over the long term, he’s concerned that the steep price may have some negative effects on the company’s current financial state.