Report: EA Looking for Sale?
A report in the New York Post today claims that Electronic Arts has been approached by private equity firms KKR and Providence Equity Partners and have entered into discussions about a potential sale. The article quotes one source, who said, “It’s early days.”
The article also notes that EA said it doesn’t make comments “on rumor and speculation,” while KKR didn’t comment and Providence didn’t return the newspaper’s calls. Providence owns a stake in Bethesda (and, consequently, its parent Zenimax). Providence had purchased a total of $450 million in convertible preferred stock in Zenimax between 2007 and 2010. Adding EA to their portfolio would probably be a pretty nice feather in their cap.
The article notes that, while their stock is trading at about $13 right now, a source says EA would look for an investment at a higher rate:
“They’ve made it known they’d do a deal at $20 a share,” the source is quoted as saying.
Interesting stuff, isn’t it? Stay tuned for more on this as it develops.
Via New York Post