Rumor: EA 'up for sale', private firms 'KKR' and 'Providence' interested

[garyopa]

According to the New York Post. EA share price rises after report.



US sources says the publisher is 'quietly exploring' sale, with private equity firms KKR and Providence Equity reportedly interested.
Analysts calls deal 'low probability', however.

According to a source 'close' to The New York Post, Electronic Arts is is "quietly exploring" a sale.

The publisher has reportedly been approached by private equity firms 'KKR' and 'Providence Equity Partners', the latter of which owns a partial stake in Bethesda parent company Zenimax.

Discussions are still in "early days", they said.

Now, it looks like EA shares surged by more than 8% 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.

However, some say a possible deal would be unlikely:

A source close to CNBC’s David Faber has denied Providence is looking to buy into the games maker.

“Sources tell me Providence has not spoken with EA and has no interest in buying company,” Faber tweeted.

[...]

Asked about the likelihood of EA being sold, Wedbush Securities analyst Michael Pachter told GameSpot, "It's a low probability. I don't believe it."

EA responded to the NYP with a no comment “on rumor and speculation”.

Pachter expects EA’s stock to “more than double in the next 12 months.”

Yep, Vivendi is ALSO actively interested in selling its stake in Activision Blizzard, however the firm is facing a "tough sell".

NEWS SOURCE #1: EA For Sale (via) GameSpot
NEWS SOURCE #2: Mad for Madden (via) New York Post

Our thanks to 'Gauss' for this news item!

[Battlefield]

This is new.. EA for sale? Who wants to buy this crap which probably costs billions?
Pachter cant be trusted, and i think people already know that.

The gaming industry will face a even harder time in x amount of time, and this is why they are selling.
They will sell it while its worth something so some other people can take the loss in the future.

Its their own fault that they ruined the gaming industry.

[billysastard]

but vivendi is actually trying to sell, ea are probably saying this in the hopes it will lift their share price out of the toilet their uncontrollable greed has driven it.