Comcast Explores The Idea Of Entering Gaming

Comcast is known for its mega acquisitions. No company is too small for Comcast to buy, whether it be AT&T, Sky, or NBCUniversal, all of which were acquired for 10s of billions of dollars. Reportedly, Comcast is seeking to expand into gaming, according to Bloomberg, and could acquire a major video game publisher if the right deal comes along. 

Video games, or interactive entertainment are the largest vertical of the media market. Gaming eclipses other media verticles like movies, film, and TV combined. When only a couple million people watch the Grammys and the Oscars while over 100 million watched The Game Awards, Comcast is not wrong for wanting to seek to enter gaming in one way or another. 

According to Bloomberg, Comcast feels as if something is missing from its portfolio. Cable, a major source of revenue for the company, is dwindling. The company has been looking at gaming with curiosity. In fact, Comcast tried to make a play to acquire Electronic Arts last year. EA also reportedly held talks with Apple and Disney.

Comcast is not the only media giant that is seeking to enter gaming. Amazon and Netflix have their own offerings in the interactive entertainment space. Amazon has its own game studios, while Netflix is building its own game studios from the ground up with the plans of developing AAA-quality multiplatform games. Google also had offerings such as its Stadia service, which shut down this year. 

If the company wants to expand into gaming, there are only a handful of publishers that haven’t been acquired yet, that are worthy of a deal. EA and Take-Two are the only two major American gaming publishers that haven’t been bought out. We find it unlikely for Comcast to acquire a Japanese gaming company like Bandai Namco or Square Enix. Ubisoft is unlikely, and we think Amazon will make a move for the Embracer group.

That leaves Take-Two and EA, both of which own a massive library of IP. EA owns Battlefield, Mass Effect Dead Space, Apex, Titanfall, and tons of other properties. Take-Two owns Red Dead Redemption and Grand Theft Auto, two of the largest media franchises in general. For Comcast, IP will be a major decision in who it seeks to acquire, as those IPs could be adapted to TV and film for its streaming service Peacock.

Take-Two and EA are cheap, compared to Activision Blizzard which Microsoft seeks to acquire for $69 billion. In the past, Comcast has had no issue paying up to $40 billion for acquisitions. Whether or not Comcast moves forward with a major industry-shaking acquisition is up in the air. But many are looking to enter the gaming vertical, and their eyes are set on the same small number of companies.