EA cuts ties with FIFA soccer

Article Excerpt

ELECTRONIC ARTS, $128.97, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 281.2 million; Market cap: $36.1 billion; Dividend yield: 0.6%) now plans to remove the word “FIFA” from the title of its popular soccer videogame franchise when its partnership with FIFA ends. FIFA is the governing body for many international soccer tournaments, most notably the World Cup. Beginning in 2023, the franchise will become EA Sports FC. It will continue to feature the world’s most popular soccer teams through licenses that Electronic Arts has made with the U.K.’s Premier League, Germany’s Bundesliga and other leagues. Note that the relationship with FIFA isn’t necessarily over—the company could potentially work with FIFA in connection with future World Cup events. Meanwhile, though, the loosening of ties with FIFA means Electronic Arts gains freedom to work with brands that were previously off limits due to the governing body’s rules. Ending the FIFA partnership will likely save Electronic Arts money in licensing fees, which can…