
Please try another search
By Vlad Schepkov
Electronic Arts (NASDAQ:EA), a renowned video game publisher behind FIFA, Battlefield, Star Wars, and countless other gaming franchises is actively pursuing a sale or a merger, according to a report by Puck.News.
An article published late Friday, May 20, 2022, claims that EA's CEO Andrew Wilson and Electronic Arts "have held talks with a number of different potential suitors, including Disney (NYSE:DIS), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN)," as the company "has been persistent in pursuing a sale."
Puck’s story further notes that EA had been deep into negotiations with Comcast's (NASDAQ:CMCSA) NBCUniversal and its CEO Brian Roberts, who pursued the potential transaction intending to eventually spin off the entertainment business into a combined (with EA), newly formed company – before the talks stalled over price.
If true, a potential Electronic Arts deal likely won’t surprise the market considering recent “big-name consolidations” in the gaming industry: Activision Blizzard (NASDAQ:ATVI) got acquired by Microsoft (NASDAQ:MSFT) for $69 billion, while Take-Two (NASDAQ:TTWO) picked up Zynga (NASDAQ:ZNGA) for $12.9 billion. Still, Jefferies analyst Andrew Uerkwitz notes that "probability favors no deal over a deal for the next several quarters."
Commenting on potential buyers, he notes that " Disney and Apple 'make little sense to us,' while Amazon looks plausible”, and goes on to point out "Comcast spinning Universal into EA sounds very interesting, but likely much harder in reality vs. on paper."
Still, he believes "Electronic Arts Inc's stock likely has a floor given the possibility of a deal," as he reiterates a “Buy” rating on the shares of the famed video maker.
EA is climbing over 4% higher in Monday’s early trade.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.