NYP Rumor: EA officially up for sale, KKR and Providence interested

RSTEIN

Comics, serious business!
Mar 22, 2007
10,803
0
0
Link

WSJ said:
Videogame maker Electronic Arts Inc. (EA) is exploring a sale as the company struggles to grow its business amid competition from free online gaming sites, the New York Post reported, citing sources.

The paper reported EA has been approached by private-equity giants KKR and Providence Equity Partners about a potential deal.

Representatives for EA weren't immediately available for comment.

EA is the maker of such popular video games as "SimCity" and "Madden NFL" and had a market value of $4.17 billion as of Wednesday's close.

Shares climbed 17% to $15.25 in light premarket trading and are down 36% this year.

The paper quotes a source familiar with the company saying EA would do a deal at $20 a share. It last traded above that price in January.

EA has reported mixed results in recent periods as softer demand for console videogames has hurt margins and as it faces increased competition from free-access online games. Last month, EA reported fiscal first-quarter earnings fell 9% as the company's core revenue slipped.

The company is looking to transform its business model to better compete against rivals such as Zynga Inc. (ZNGA), which has expanded its business to better support Internet-based sales.
I doubt any of the hardware guys would buy.
 

Dystify

Member
Jan 21, 2011
2,754
0
0
twitter.com
Well that's almost half of what Activision / Blizzard was on sale for. ($8.1bill)

Hypothetically speaking, even if any of the console makers would buy EA, they would most likely keep the games multiplatform (at least at first) or else have a huge revenue loss.
 

1-D_FTW

Member
Jun 14, 2006
17,069
0
0
New York Post? Wouldn't call that 'officially' up for sale, just more rumours.
Yeah. Not exactly a bastion of journalistic integrity. You'd like to think it was based on solid info, but it could just be somebody trying to profit a bit from getting the "info" leaked.
 

RSTEIN

Comics, serious business!
Mar 22, 2007
10,803
0
0
New York Post? Wouldn't call that 'officially' up for sale, just more rumours.
Well, I meant "officially" in reference to the rumours that were circulating a few months ago about a sale. This time everyone is reporting it.
 

Rygar 8 Bit

Jaguar 64-bit
Feb 10, 2011
9,750
3
0
hopefully if they get bought the new management will look through the back catalog and revive road rash and mutant league