Disney CEO Bob Iger is urged by company executives to acquire video game publishers, like EA. Learn more about this and why Disney might be eyeing to be in the game industry.
CEO Bob Iger Pushed to Acquire Video Game Publishers
Disney: Next Gaming Giant?
Disney’s Bob Iger has been reportedly urged by company executives to acquire video game publishers like EA, according to a report by Bloomberg. Disney executives hope that the CEO will consider "a bolder transformation of Disney" and transition from licensing games based on its IP and move up to become a gaming giant. Such a transformation may be achieved through a possible acquisition of Electronic Arts. However, Iger has been reported to be evasive to such suggestions.
However, acquisitions under Iger are not new. Under his management, Disney has acquired several key companies like Pixar, Marvel, Lucasfilm, and 21st Century Fox. Consequently, intellectual properties such as games and adaptations were also under Disney licensing.
Trouble in Paradise
Disney may be looking to acquire video game publishers because of one key reason: they’re losing money. The Bloomberg report details the decline of the company. Iger said publicly that the company is in worse financial shape than he realized, losing hundreds of millions of dollars every quarter. Key divisions of Disney, especially its streaming service Disney+ and its movie arm, seem unable to carry the weight of the media giant.
New Players in the Video Game Industry
Undoubtedly, the video game industry has grown exponentially in recent years, with more and more triple-A offerings and larger profit margins for successful games. This growth and opportunity has attracted large companies with no game industry experience to expand, acquire studios, and develop their own games.
For example, in the past years, Amazon and Google tried to get a piece of the pie with multiple attempts. Amazon developed New World and published Lost Ark globally, while Google tried to break into the cloud gaming scene by making Google Stadia, which did not turn out as they had expected it to be. All in all, the industry had lukewarm reception to these attempts, but maybe something like "Disney Games" studios could change all that.
Sources:
Bloomberg: Has Bob Iger Lost the Magic?
