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.

wallstreet
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?

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission. For more information, go here.

Jump to comments (43)

About the author

Robert Purchese

Robert Purchese

Senior Staff Writer  |  Clert

Bertie is senior staff writer and Eurogamer's Poland-and-dragons correspondent. He's part of the furniture here, a friendly chair, and reports on all kinds of things, the stranger the better.

Related

You may also enjoy...

Comments (43)

Comments for this article are now closed. Thanks for taking part!

Hide low-scoring comments
Order
Threading
Eurogamer.net

Buy things with globes on them

And other lovely Eurogamer merch in our official store!

Eurogamer Merch