EA buyout rumours power share price hike

NASDAQ listing price up over $14 after New York Post story

A story flouting a rumour that Electronic Arts might be the target of an acquisition has seen the company's share price rise by over a dollar in pre-market trading on the NASDAQ.

Closing last night at $13.09, prices opened today at $14.38 - still well below the $25.20 they were trading at nine months ago and the company's high-water mark of $68.20 on 4 February, 2005.

Nonetheless, the hike - prompted by an as yet unsubstantiated article in the New York Post - represents a welcome upturn in the publisher's fortunes after hitting all time lows this year.

At the time of writing, EA's shares were trading at $13.95 and dropping back towards last night's closing price. Trading volume was also well up.

The New York Post believes that two private equity investors are interested in a purchase of EA: KKR and Providence Equity Partners. PEP already owns Bethesda, so has a good insight into the market, but the post's story remains unsourced. All three companies have so far declined to comment on the issue.

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Latest comments (4)

Terence Gage Freelance writer 9 years ago
I have thought for some time now that Bethesda/Zenimax was privately owned. Not sure where I got that assumption from.
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Wow - what one bad E3 (exhibition) can do for an industry!

Never have so many investors been seen to jump ship from one industry! We see executives leaving posts early, and now we see the big investment houses encouraging boards to divest-themselves of interests with the major publishers. Is the plans for DLC so bad? Or is this spiral in sales terminal in their eyes?

After hearing about the change to a proposed management buy-out of Activision, along with the THQ situation - this was just the icing on the cake... and still no news about Atari?
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Andrew Goodchild Studying development, Train2Game9 years ago
@Terence, I believe it is a privatly traded company, it is owned by PEP, not traded publicly on a stock market.
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Wait till you check out the nose dive at Facebook and related Zynga
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