Friday, April 01, 2005

Ubisoft mulling to buy Rare?

Coola at XBOX365 wrote that rumours are running rampant and whisper that Ubisoft is going to purchase Rare from Microsoft. Rare is also European company and that is supposed to be the added benefit for Ubisoft. Deal is or is not made official at E3.

In my opinion this will not happen. If Microsoft does this, they are going to loose lot of money. Ubisoft is in no condition to pay hefty sums of 350 million dollars like Microsoft did. On the other hand, Microsoft has deep pockets to cover realized accounting losses and discount selling is a good way to get rid of money loosing operation that ties up lot of capital. Ubisoft has to have excellent plans for Rare if they are going to handle this deal with good conscious.
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