EA's share price leaps at rumours of a buyout

Could it be true?

Rumours of a buy-out have boosted EA share prices today, as unbelievable as that sounds. Or is it?

The New York Times (via the Wall Street Journal and NeoGAF) ran a piece claiming private-equity mammoths KKR and Providence Equity had approached EA about a possible deal.

A source "familiar with EA" apparently said EA would do a deal at $20 a share.


Looks a bit like Riccitiello, actually.

EA has a market value of $4.5 billion. That's at the current share price of $14.20 - up by over $1 since the rumour hit.

At $20 a share, the market value rises to $6.36 billion. It's a lot, but then there are a lot of companies, particularly in the East, with that sort of clout.

Despite having a catalogue of hits, and seemingly wringing every last penny from every last customer, EA has felt the strain.

A three-year share-price high was reached in October 2011, of nearly $25. But it's been a downward slope since then, with the price tumbling to a 10-year low of just under $11 on 25th July.

EA's highest ever share price was, incidentally, $64 back during Christmas 2004.

Could it be true?

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