Bob Iger, the acting CEO of Disney, has reportedly been counseled to try purchasing Electronic Arts. Iger’s deputies are pushing for Disney to become a “gaming giant,” according to Bloomberg, which goes into great detail on the on-again, off-again executive’s recent leadership struggles. This would probably include Disney purchasing an already-existing game publisher.
Iger’s past few years have not been smooth, as Bloomberg’s detailed account reveals. The CEO was meant to depart Disney in 2021, but he has now come back to help the business through a sharp decline in value. His tone-deaf remarks regarding the Writers Guild of America strike, Disney+ losses, and lower corporate valuation over the past year have tarnished his reputation, even if he was formerly praised for quintupling Disney’s market cap.
Given this, it should come as no surprise that Iger is eager to see Disney—as well as his personal reputation—get better. Deputies for the executive have proposed a number of possible tactics to that purpose, such as a “bolder transformation of Disney from gaming licensee to gaming giant.” How would the business accomplish this? By acquiring other businesses, which is what Disney does best.
It has been rumored that someone close to Iger have proposed purchasing EA, a significant video game publisher. Bloomberg reported that Iger has been “noncommittal” on the idea, but it did not clarify why EA was picked out or where this particular information may have originated. This specific fact may provide some solace to individuals who are upset about Disney acquiring yet another entertainment company. However, the view from the other side of the fictitious transaction is not favorable. By dividing its EA Entertainment and EA Sports businesses into two distinct identities, EA has been positioning itself for acquisition. Disney believed that since it wouldn’t have to go all in, it would be simpler to stomach a gaming venture. Also, it would happen far more quickly than establishing a separate game publishing division.
Disney and EA already have a somewhat formal partnership. In 2013, LucasFilm, which Disney acquired for $4.05 billion in 2012, gave EA the only license to develop Star Wars video games. In the end, this allowed EA to produce Star Wars Battlefront, Star Wars Jedi: Survivor, and the peculiar The Sims 4 extra pack called Journey to Batuu. EA’s monopoly on Star Wars games was practically broken when those licenses expired, but the publisher is still committed to the franchise; it just needs to compete with other companies.
According to the story, Iger hasn’t been thrilled with any Disney-saving ideas that have been put forth in recent months. From the outside looking in, the likelihood of an EA acquisition is about the same as that of any other Hail Mary circulating within the Disney C-suite.