$27 Million Settlement Announced in EA Madden Price-Fixing Lawsuit

[DeuceDouglas]

Quote: Originally Posted by chi_hawks

EA's stock has been tanking. The company is hurting. Losing another 30 mil, in addition to the investment they made in UFC (which I think will flop) could spell the end for these guys.

I saw a tweet that said this settlement is worth about half of what EA made off Madden Ultimate Team last year alone. EA's not going anywhere.

[SLVRBLCKATTACK]

Quote: Originally Posted by jWILL10

Calm down, bro. Every major corporation promotes a net profit, as well as a loss, for every quarter...

I am not mad, but damn the guy believes this company losing maybe 40 mil is going to break them, that is just sad

Now Star Wars crashing that is going to hurt them

[chi_hawks]

Quote: Originally Posted by SLVRBLCKATTACK

were so doomed as a country, I have no idea how to even respond to this statement EA posted $83 million in net income (PROFIT!!!) last quarter (ONE 3 MONTH PERIOD). Which include only these console games, Mass Effect 3, FIFA Street 4, SSX, and Kingdoms of Amalur: Reckoning I am sorry for insulting you, but two minutes of work could of kept you from looking like an idiot.

Funny thing you mention looking things up before posting - because thats exactly what I did. Its nice being able to read through SEC documents on all companies.

Long story short, here is the net income after tax (which is what matters) for EA over the last 3 quarters:

Q3 2011: -340 million
Q4 2011: -205 million
Q1 2012: 400 million

I don't have Q2 for this year, but regardless, the companies income after taxes, over 9 of the last 12 months, is -145 million.

Now, they have another 30 million plus lawyer fees to pay.

Also, read my post better next time chief. It didn't say that this alone was going to bankrupt them. I said that this, in addition to the money they spent on UFC license (which I think will fail) may signal the end for EA.

There is a reason this companies stock is at its lowest levels in almost 20 years and was rated as the most hated company in America. Maybe they can turn it around - idk? Paying 30 mil in penalties isn't a good start though.

In case anyone wants to see more info on the trainwreck that is EA:

http://www.google.com/finance?q=NASDAQ:EA

http://investor.ea.com/sec.cfm

[chi_hawks]

Quote: Originally Posted by SLVRBLCKATTACK

I am not mad, but damn the guy believes this company losing maybe 40 mil is going to break them, that is just sad Now Star Wars crashing that is going to hurt them

Could spell the end <> bankrupt. Perhaps I could have worded this a little better....EA is in trouble, has been in trouble, and this doesn't help.

It is funny how pissed this appears to have gotten you, though. Almost like your a hedge fund manager and you have some portfolios heavy leveraged in EA stock. Regardless, its kind of amusing.

Also, welcome to OS (I see you just recently joined).

[scoonie05]

bankrupt?? Lol....

[mestevo]

Quote: Originally Posted by chi_hawks

Could spell the end <> bankrupt. Perhaps I could have worded this a little better....EA is in trouble, has been in trouble, and this doesn't help. It is funny how pissed this appears to have gotten you, though. Almost like your a hedge fund manager and you have a lot of your clients heavily invested in EA stock. Regardless, its kind of amusing. Also, welcome to OS (I see you just recently joined).

Are you really surprised someone called you on predictions EA would fail because they settled a lawsuit for $27m with none of the context you decided to add after the fact? Context that shows that quarterly they are trending very favorably in the black so pardon us if it doesn't do a whole lot to convince many who bother to read it.

EA lists $5.4b in assets on it's balance sheet, $1.8b of that in cash and short term investments. UFC could get cancelled and this lawsuit could be for 10x this amount and EA wouldn't be going anywhere.

Could they be better positioned? Certainly, but the entire industry is pretty depressed, an industry in which they're a pretty big player, their stock reflects that volatility.

Bankrupt? In trouble? Hardly.

[scoonie05]

If he consider EA in trouble, what does he consider TAKE two aka 2k which is hurting more then EA??

http://www.google.com/finance?q=NASDAQ:TTWO

[chi_hawks]

Quote: Originally Posted by mestevo

Are you really surprised someone called you on predictions EA would fail because they settled a lawsuit for $27m with none of the context you decided to add after the fact? Context that shows that quarterly they are trending very favorably in the black so pardon us if it doesn't do a whole lot to convince many who bother to read it. EA lists $5.4b in assets on it's balance sheet, $1.8b of that in cash and short term investments. UFC could get cancelled and this lawsuit could be for 10x this amount and EA wouldn't be going anywhere. Could they be better positioned? Certainly, but the entire industry is pretty depressed, an industry in which they're a pretty big player, their stock reflects that volatility. Bankrupt? In trouble? Hardly.

No, not surprised. Could have worded it more appropriately (notice hes banned now).

Anyway, regarding EA's cash reserves as a backup for no quarterly income, if a company has to dig into its cash reserves to pay its bills, employees and dividends, its generally frowned up. Look at Sony. They have what, 21 bn in cash reserves, and it doesn't matter. They have been losing, their stock is at early 90's levels (much like EA). The market and investors are concerned - which directly coorelates to their market value and what folks are willing to pay for a share of their stock. Same applies for EA.

Will Sony continue to be able to pay dividends and get by? Sure. For a long time, I suppose. But if I had to make a roadmap from here to the end for Sony, it would look a lot like what is going on with them right now. Same with EA. It is a good sign for them that they were in the black the last 2 quarters though, but I think that breaks them even over a 1 year period. Not exactly what you'd like to see from the industry giant.