Troy Wolverton

Electronic Arts Lands Body Blow

 

EA has not disclosed how much it paid for either deal, and following the agreement with the NFL, some analysts worried that the company might have overpaid.

But taken together, the deals likely mean that EA will be able to raise its prices in the next couple of years without fear of competition.

"While EA will likely see some price pressure in 2005, the EA sports flank, we believe, is now secure as it enters the next console cycle," said Hernandez, in a note on Tuesday. (Lehman Brothers has not done recent investment banking business for either Take-Two or EA.)

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