Providence-Equity-Partners
Latest
Rumor: EA putting itself up for sale
Electronic Arts, long known for assimilating numerous studios under its label, may be putting itself up for sale in return. The New York Post reports that EA is looking into such a deal with various interested firms, such as KKR and Providence Equity Partners. One of the Post's sources said that EA would be willing to sell to such a firm at $20 a share, even though the company's share value is currently just north of $13. Its stock fell from $25.20 nine months ago, although industry analyst Michael Pachter predicts that EA's stock should double within a year. EA isn't the only company looking to shore up its future, as the videogame market is slumping worldwide since last year. One bright spot is its digital sales, which are up over 2011's numbers and resulted in a $324 million revenue in the first quarter of 2012. EA refused to comment on the rumor, as did KKR and Providence Equity.
NY Post: Electronic Arts 'quietly exploring a sale'
According to unnamed "sources" speaking with the New York Post, Electronic Arts may be seeking buyers. Both KKR and Providence Private Equity Partners are named in the piece as exploring the purchase, though talks are said to be in the "early days." Providence Equity Partners owns a partial stake in Bethesda parent company Zenimax Media; both PEP and KKR declined to comment on the report.Electronic Arts is a publicly traded company, and its share price is currently just over $14 – according to one NYP source "familiar with the company," EA would "do a deal at $20 a share." EA also declined comment. "We don't comment on rumors and speculation," a rep told us this morning.
