Anybody want to buy a slightly used company? Publishing giant EA has apparently been approached by two private equity firms about a potential sale. Sources have claimed that the company was approached by private equity firms KKR and Providence Equity Partners over the possibilty of a purchase, but emphasised that talks are at an early stage.
EA shares surged by more than 8 percent this morning to over $14 per share, representing the highest intraday gain since February 2. One source reportedly familiar with EA said the publisher will "do a deal" when the company's share value rises to $20.
An EA representative told KJBcast that "We don’t comment on rumors and speculation". But, for they record, the also don't comment on facts and truths, or to any of their customers in need of any kind of help. So, we tend not to take it personally.
It's a difficult economic time right now, and many video game companies have experienced similar stock falls to EA thanks to increased interest in casual and social games. EA, like most of the games industry, was hit hard by the recession in 2008, failing to anticipate the strong emergence of tablets and social games. With a third of the company's value disappearing so far this year though, it's unsurprising that potential buyers are being sought.
We must remind you that this hasn't been confirmed and even the claims state that any deal is still a long way off. Providence Equity Partners is a major shareholder in Bethesda's parent company, Zenimax. As a result, it's certainly a story worth keeping up to date with. Keep with us here and we'll give you the facts as we get them!