EA shares skyrocket

[UPDATE] Company share value closes up 17 percent after earnings report, Star Wars deal, and FIFA license extension.

[UPDATE] Shares of Electronic Arts closed today up 17.11 percent (+$3.15) to $21.56, the highest valuation since the end of 2011.

The original story follows below

Shares of Electronic Arts are up more than 15 percent today after the company's busy week of big news.The publisher announced a new partnership with FIFA today, reported full-year revenue of $3.79 billion yesterday, and signed a new Star Wars deal with Disney on Monday.

At press time, EA shares are up 15.59 percent (+$2.87) to $21.28 for the day. This represents the company's highest stock value since the end of 2011.

EA's new partnership with FIFA will give the publisher exclusive license for future games through 2022. As part of the recent EA-Disney pact, EA will make new Star Wars games for consoles, PCs, tablets, and mobile. Battlefield developer DICE and Dead Space studio Visceral Games are currently working on the new games, powered by the Frostbite 3 engine.

EA's stock is hot today and if the company can execute its near- and far-term goals, growth will only continue, according to the publisher.

"As we enter a new fiscal year, EA is well-positioned for dynamic growth on next generation consoles, PCs, and mobile platforms," executive chairman and interim EA CEO Larry Probst said yesterday. "With world-class games, a rapidly growing digital business, and top-notch creative talent, we are excited about EA's strategy for FY 2014 and beyond."

In an effort to reduce costs, EA recently cut 10 percent of its global workforce, or around 930 people. The publisher will pay $16 million in severance expenses as a result.

EA is not the only game company to see its share value rise today. Grand Theft Auto parent publisher Take-Two Interactive is up 3.8 percent (+$0.60) to $16.35 today, while Activision is up 2.8 percent (+$0.42) to $15.36.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

162 comments
dadkwashere
dadkwashere

Hopefully this news is fake like the Xbox Infinity thing...

xXMMMMXx
xXMMMMXx

EA sometimes fail can do amazin and wonderfull games, but not make the best games only because this shhittt!But the games are not bad, only could do much better. I hope EA change policy.wish all companies evolve at all and I hope to improve because there is no hate, instead love them all, because the give me great and the best games i play in my life, and I wish the best for all because it can also play great games in the future.

Atombomb1981
Atombomb1981

The control the market and continue to feed us bullshit.

julzeverne
julzeverne

Great. People giving EA money so they can fuck up another beloved franchise.

Since I have no intention of ever installing Origin, I guess I will never have to see how bad any of this crap will turn out.

So there's that.

Yulaw2000
Yulaw2000

Considering how bad it was, it's still relatively low but it seems some investors may have been quick to forget EA's recent track record.

Recent history shows that there's a good chance that they are going to mess this Star Wars deal up and their previous deal with FIFA hasn't stopped them from getting in their recent mess.

I'd very much like to see EA change their ways and start treating their customers well: until they start doing so, they can't expect to do very well as a company: hopefully, both EA and these investors will learn that some day.

Kemutsemu
Kemutsemu

"According to the publisher."

Yeah, no. Their shares are going to regress back to the mean. No amount of Star Wars shovel-ware will keep their values this high.

blackothh
blackothh

oh dont worry, what goes up must come down

OldKye
OldKye

"oh the jedis are going to feel this one"

ApocaLeepse
ApocaLeepse

They're still not getting a penny from me until I see some massive positive changes to how they treat their customers.

ACWH
ACWH

I'm a bit disgusted with the Premier League selling image rights to EA exclusively. This means no other developer can now mount a serious challenge to FIFA football. We all know Pro Evo suffers from a lack of licensed kits etc... amongst other things but this just means no competition for the next few years.

theend3r
theend3r

Glad they killed off ME, DA and DS, I don't have a reason to support those bitches anymore.

Neo_OnionKnight
Neo_OnionKnight

Oooh like that Star Wars movie "The Empire Strikes Back".


Them Sith Lords are makin money!

gunsofdeschain
gunsofdeschain

this thing just doesn't die. It's like watching an 'Aliens' movie.

tionmedon
tionmedon

stock up 2day,bankruptcy 2morrow...........fap it..................


commanderxp90
commanderxp90

Hey EA why don't you make the BattleFront 3 or Command N Conquer game to release before 2015?  Let's focus on developing the BattleFront 3 or C&C game and ignore the shared stocks and investment in the rest!

ItchyIsVegeta
ItchyIsVegeta

As much as I can't stand this company, good for the average every day people who own stock in EA. 

Sav117
Sav117

hahahahaha, i havent bought an EA game for over 8 months or so....so none of this is mine! Up urs EA!.  8 months sober!, join me in not buying garbage!

FlameBoyBen
FlameBoyBen

Its still pretty low, especially the pre-swtor pre-mass effect 3 they still haven't quite recovered

CidX1
CidX1

EA just teamed up with Disney to make star wars games didn't they? Likely had some impact.

snova9308
snova9308

aparently, firing 10% of the total staff results in skyrocketing share prices.

glennvolio
glennvolio

They really are the evil empire.  :-(

Zloth2
Zloth2

Actually, stocks are up on the rumor that Gabe Newel will be hired as the new CEO of EA. ;)

MW2ismygame
MW2ismygame

WERE MAKING LOADS OF MONEY !!!!! But we need more becasue those pirates are killing us, Used games are killing us, offline is killing us, no-sub is killing us.....Oh and 10% of you will get pink slips !!! 


Now to swim in my money pile !!!

Barrakas21
Barrakas21

I dont wanna live on this planet anymore.

smtgfx
smtgfx

So lets get this right. They complain about games not meeting their goals yet they turn around and make profit. Something is not right here!!!!

noladem504
noladem504

@Yulaw2000 I couldnt agree more. But i believe that is what this recent restructuring is about, which is why investors are flooding in. EA had bad management so the CEO is being replaced along with others that were seen to be holding the company back from being what it can. Hopefully this restructuring will fix all of their problems and we can see their full potential. They have too many great titles to not hope for the best. If they end up with the same old antics, oh well...bye bye EA

ApocaLeepse
ApocaLeepse

@ACWH It's disgusting that a huge company such as EA gets exclusive rights to anything. It hurts smaller companies faster than you can say "business monopoly".

ApocaLeepse
ApocaLeepse

@commanderxp90 If they made a Battlefront 3 game, I can guarantee the scope would be nothing compared to what was originally planned for it. Everything would be sacrificed in the name of prettier graphics, online passes and microtransactions.

commanderxp90
commanderxp90

@Sav117 Ditto! :D  I won't buy any EA games because EA always kept stealing money from either consumers or gamers. Fux...you EA!

nutcrackr
nutcrackr

@snova9308 imagine how high the stock would soar if they fired 100% of their staff. EA stocks up 171%!

jhcho2
jhcho2

@Barrakas21  

Seriously. What did you expect? If you couldn't see this coming, it's a sign that you need to work on managing your expectations.

commanderxp90
commanderxp90

@smtgfx Let's gather gamers to protest against EA that we did not understand why EA have lack of knowledge what those gamers have meet their goals.

jhcho2
jhcho2

@smtgfx  

'Did not meet expectations' does not mean making a loss. it just means that they did not earn as much profit as they expected...or wanted. Making less profit than you wanted is still turning a profit. It does not mean the company isn't doing well either. If EA expected to make 10 Gazillion dollars but instead ended up making 8 Gazillion dollars, that's falling short of expectation. Is it really bad predicament? No.

Zloth2
Zloth2

@smtgfx Uhhh, I think you're thinking of Square/Enix.

xanthan1
xanthan1

@snova9308 @Zloth2 The same kind of idiot who believes cellphone gaming is the future and all gaming companies will fail if they don't start making cellphone games.

Shareholders tend to be morons with no pattern recognition, no common sense, and no long term planning.

julzeverne
julzeverne

@jhcho2 @Barrakas21 Better yet. Stop buying games from EA. Give your money to game companies who you respect.

I respect Valve. So I buy games through steam. I do not respect EA, so I will never install origin.

Consumers control the market. So let's start making good decisions for the future of gaming.

noladem504
noladem504

@commanderxp90 @smtgfx Protest? Its called dont buy their products. Protesting isnt going to do anything lol. THey are not violating peoples civil rights, they just suck at putting out polished games. Vote with your wallet.

smtgfx
smtgfx

@commanderxp90 @smtgfx - I am with you. Quality of games has gone down the drain. How about EA lets developers develop.

smtgfx
smtgfx

@jhcho2 @smtgfx - All good points. But to publicly say that it did not meet their projections is basically saying we wanted to make more money on it which in turn equals greed.

Don't get me wrong I like EA and I am greedy myself but lets all do our jobs and call it a day. EA publishes and Developers DEVELOP!!!

jhcho2
jhcho2

@Zloth2 @smtgfx  

He's referring to EA's expectation of Crysis 3 and  Dead Space 3 falling short

noladem504
noladem504

@nanorazor @nutcrackr @snova9308 Its called restructuring. The 10% layoffs more than likely saved the other jobs. They also fired their CEO. It is TOTAL restructuring. When companies are failing, sometimes you have to cut out the fat to save the rest of the companies (i.e: jobs). Investors more than likely see this as a good thing. It shows the company as a whole has acknowledged the problem and is addressing it. Being EA has seen so much success and has such titles as battlefield, madden, and star wars, any business minded person who knows the industry would see this as a good thing for all of us. The employees of the company and the consumer.
Hopefully this EA will be better than the last. I personally am tired of getting highly anticipated games when they first come out only to have to wait for their servers to catch up to play multiplayer or them to send out update patches to fix the single player. Its about time they get their sh$% together. 

jhcho2
jhcho2

@julzeverne @jhcho2 @Barrakas21  

The problem is, there are good developers worthy of support which fall under the EA banner. Bioware and Visceral Games are among them. Perhaps even Crytek. Boycotting would only serve to make talented developers go under.

noladem504
noladem504

@xanthan1 @noladem504 @smtgfx @jhcho2 Still accepted more? The "more" is called profits. Apparently, "greed" is pretty awesome being it was the driving force behind every great innovation in history including the technology we love enough to be commenting on this website about. Can you please name for me a single system that is not run on greed? Greed isnt the problem, it is unchecked greed (theft, scams, etc). The only way companies like EA make money is if they produce a product that WE feel is worth OUR money and we then VOLUNTARILY pay for. I give EA my hard earned money and they, in turn, share with me they're own hard worked projects that we call video games. They then take the money me and God knows how many other people give them to finance research for new graphic engines, new games, new ideas ect. Therefor, the MORE PROFITS they make, the BETTER my gaming experience is. 

So please tell me, what company is it that advances technology in any way that would , as you put it "not accept" profits.

noladem504
noladem504

@smtgfx @jhcho2 dude, its a company, IT HAS TO MAKE PROFITS TO SURVIVE! Its not greed, its economics. How do you think they pay to expand? to work on new titles? to pay their designers? t do technological research? PROFITS, genius. I'd like to see you goto work everyday for only food and water and see where you end up in life. Im so tired of the ignorant fools on here getting so mad because a company makes money. What is it do you think that makes it posible that we all play VIDEO GAMES? How about the computers and tablets we are all typing on? PROFITS!