Electronic Arts for Sale

[newarkhiphop]

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.

Full story:

EXCLUSIVE: Videogame maker EA, behind "Madden NFL," exploring a sale, approached by private-equity giants KKR and Providence Equity Partners - NYPOST.com

 

[Liquid]

Do it valve, just do it

 

[Bud Bundy]

most of there games suck anyway.

 

[beenz]

in theory, can't a publicly traded company always be up for sale given u can buy up enough shares?????

 

[King Sun]

lol at valve buying this. That will be the ultimate ether

 

[BLAZO da GAWD]

in theory, can't a publicly traded company always be up for sale given u can buy up enough shares?????

Not necessarily

 

[newarkhiphop]

Google should commit that

 

[MewTwo]

If I was running EA I would abandon the console market and migrate over to portable (i.e.: iphone, 3ds, psp vita, and maybe tablet). Games on those platforms are cheaper to make but generally get bigger returns. Why spend millions making mediocre big budget games like Battlefield that are easily overshadowed by Call of Duty. The Madden brand has also gone stale not sure why they bother with that shyt.

 

[Liquid]

If I was running EA I would abandon the console market and migrate over to portable (i.e.: iphone, 3ds, psp vita, and maybe tablet). Games on those platforms are cheaper to make but generally get bigger returns. Why spend millions making mediocre big budget games like Battlefield that are easily overshadowed by Call of Duty. The Madden brand has also gone stale not sure why they bother with that shyt.

battlefield and madden are basically what keep EA afloat

 

[King Sun]

valve please pick up the rights to mirrors edge

 

[Typical Knicks Fan]

Microsoft should buy them. Have them making avatar props and clothes.

 

[CrimsonTider]

in theory, can't a publicly traded company always be up for sale given u can buy up enough shares?????

If 51% of the shares are outstanding

 

[jadillac]

Somebody buy these clowns then put them outta business.

They've stolen so much of my money over the years.

 

[RicanFury]

If I was running EA I would abandon the console market and migrate over to portable (i.e.: iphone, 3ds, psp vita, and maybe tablet). Games on those platforms are cheaper to make but generally get bigger returns. Why spend millions making mediocre big budget games like Battlefield that are easily overshadowed by Call of Duty. The Madden brand has also gone stale not sure why they bother with that shyt.

 

[Sensitive Blake Griffin]

How the mighty have fallen. EA used to be one of the best game developers ever.