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Forums - Gaming - Electronic Arts up for sale?

Troll_Whisperer on 16 August 2012

http://online.wsj.com/article/BT-CO-20120816-705905.html

 

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.



No troll is too much for me to handle. I rehabilitate trolls, I train people. I am the Troll Whisperer.

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DanneSandin on 16 August 2012

So it begins, the fall of the video game giants. Never thought I'd live to see the Day



I'm on Twitter @DanneSandin!

Furthermore, I think VGChartz should add a "Like"-button.

Galaki on 16 August 2012

April 1 already?



Pre-order limited edition Blue Slime Condoms

Mr Khan on 16 August 2012

This is just the sort of thing you have to tough it out through. This generation went on a bit too long, and third parties have to deal with that.



Monster Hunter: pissing me off since 2010.

silicon on 16 August 2012

Anyone else think it's funny that the article mentions they want to transform it's business model to compete with Zynga (who are now bleeding millions)?



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mysticwolf on 16 August 2012

Let's see how much I have in my piggy bank.

Nope, I'm about 4.1699999999 billion too short.



 Been away for a bit, but sneaking back in.

Gaming on: PS4, PC, 3DS. Got a Switch! Mainly to play Smash

happydolphin on 16 August 2012

What a turn of events. How old is EA now? And companies that were created what 4 years ago are giving them a hard time.

How ironic.



Mr Khan on 16 August 2012
happydolphin said:
What a turn of events. How old is EA now? And companies that were created what 4 years ago are giving them a hard time.

How ironic.

Not really. Zynga and Facebook are pretty much also-rans by now. The IPO shattered facebook's mystique and zynga, so reliant upon a *growing* fb userbase, is now in pain to the point where their pain is negatively impacting Facebook's stock performance.



Monster Hunter: pissing me off since 2010.

happydolphin on 16 August 2012
Mr Khan said:
happydolphin said:
What a turn of events. How old is EA now? And companies that were created what 4 years ago are giving them a hard time.

How ironic.

Not really. Zynga and Facebook are pretty much also-rans by now. The IPO shattered facebook's mystique and zynga, so reliant upon a *growing* fb userbase, is now in pain to the point where their pain is negatively impacting Facebook's stock performance.

That makes it even more ironic, in that they're going down too while bringing down a massive giant with them.