EA for sale?

Sources says publisher "quietly exploring" sale, with private equity firms KKR and Providence Equity reportedly interested; EA shares surge on the report; analyst calls deal "low probability."

Electronic Arts may be for sale. According to unnamed sources speaking to The New York Post, the Mass Effect, FIFA, and Battlefield publisher is "quietly exploring" a sale.

EA sale discussions are reportedly in "early days."

EA has reportedly been approached by private equity firms KKR and Providence Equity Partners, the latter of which owns a partial stake in Bethesda parent company Zenimax. The discussions are supposedly in "early days."

EA shares surged by more than 8 percent this morning to over $14 per share, representing the highest intraday gain since February 2, according to BusinessWeek. One source reportedly familiar with EA said the publisher will "do a deal" when the company's share value rises to $20.

An EA representative told GameSpot, "We don’t comment on rumors and speculation."

Asked about the likelihood of EA being sold, Wedbush Securities analyst Michael Pachter told GameSpot, "It's a low probability. I don't believe it."

EA is not the only major game publisher that could be sold. Media conglomerate Vivendi is actively interested in selling its stake in World of Warcraft and Call of Duty publisher Activision Blizzard, though the firm is facing a tough sell.

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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
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213 comments
Dreamagus
Dreamagus

He should've divulged the link on eBay

jsmoke03
jsmoke03

i just have to say i'm baffled. the 2 biggest 3rd party publishers are trying to sell their stakes in gaming? am i missing something here? do they know something we don't?

csward
csward

Hallowed be the day the Activision and EA sell off parts of their companies like General Motors did with Saturn. The gaming industry is way too consolidated with control in too few hands, even despite digital content.

 

That's why all we see is reskinned games every year and very few innovative titles from the big 2, just cash in attempts. Anyone remember the days when game development was an art form and game developers were encouraged to take the time to get it right? When games didn't play like they came out of some programming factory?

 

The hilarious thing is that EA and Acivision did this to themselves. There are more entertaining things out there for less money. You can't just charge $60 for an average experience like you could in the PS1 days and earlier. 

MrDouglas
MrDouglas

EA sells...but who's buying?

Kjranu
Kjranu

Now is a good time to invest money in EA stock...

topsemag55
topsemag55

If anyone bought EA, would they be as willing to finance companies such as BioWare, or would they sell some of the devs off? That could doom some devs, possibly.

rey2
rey2

Hope anyone who buys EA turns it into something not involved in video games anymore.

valdarez
valdarez

EA has been a pump and dump company for nearly a decade, buying up companies to keep it's revenue growth going so people will continue to put money into it.  It's LONG overdue for a crash.  EA folding would be one of the best things that could happen for the gaming world.  Think of the developer creativity that would be unleashed through new company creations when not under the thumb of EA's (voted worst company to work for in America) rigid control.

SadPSPAddict
SadPSPAddict

Interesting thought - can't see it though......

brynhyfryd
brynhyfryd

EA, Why don't you just take your company and your anticompetitive "digital only" future and flush it down the toilet.

 

The gaming world would be better off without you.

NoelXYeul
NoelXYeul

Why don't they merge with SquareEnix? SquareEnixArts....

VenkmanPHD
VenkmanPHD

Hmmm picture bethesda absorbing Ea's powers... it would be perfect.

DaWarthog
DaWarthog

EA desperately trying to get their shares up again. LOL!

GryphonICD
GryphonICD

Can't resist; EA are for sale, but only the main bulk. The other departments will be released every few months, starting with the HR and mail department add on packs released 3 days before the main company is. If you purchase EA from the date of sale, be warned that the maintenance will be shoddy and the cleaners neglectful, but over the years of owning EA they plan to tidy it up a bit, perhaps after 6 months or so (athough they may forget to fix the issue with the front door opening entirely).

 

JimmeyBurrows
JimmeyBurrows

I get it, they see the future as free to play, which can't sustain their money hungry business practices, so bail before everything goes to shit and leave it in someone elses lap... Good morals EA.

Hurvl
Hurvl

"I hope EA goes out of business!" "Acti-Blizz is so bad they should go bankrupt!" Has the combined effort of all whining had a real effect on these companies or is it just coincidence that two of the largest and most-hated game companies are about to be sold (if the rumours are true)? I don't think things will become any better if they're sold, so I'm not eagerly anticipating it, nor do I hate them that much. I show my displeasure by not buying their games if they're not good enough and that's enough for me.

tgwolf
tgwolf

I'm sure glad this Providence Equity doesn't, to my knowledge, have any direct relation to a government entity such as RI, since that would be a very scary thing, especially after all that about people killing themselves over EA games and the kid who Blah blah blah passed out a whIle aGo. No, that would be very Bad, haRbinger fOr THings likE 'the game that watches you' oR something to that effect...

DarkSaber2k
DarkSaber2k

FFS "a source" said. That drunk down the pub who thinks the CIA gave him special mindreading dentures is also "a source". Doesn't mean it's reliable. Remember when journalists used to confirm this shit before just regurgitating it for the ratings? It's a struggle I know, but I *do* vaguely remember them days. Can't help but notice that 9 times out of 10 these bullshit "news" stories are attached to Mr. Eddie Makuch as well.

Killer6b9
Killer6b9

Now lets see.....If EA was truly for sale....Why in the world would anyone with that kind of money, cause you know it would not go cheap......buy one of the worlds most hated companies??? I know I wouldn't do it.......

wexorian
wexorian

Ummm strange days, They sell crap on market even? :O

 

ivan_osorio
ivan_osorio

This reminds me of the Seinfeld episode of 30 Rock... If only.

sieg6529
sieg6529

Will it be a single sale, or will it be something the buyer has to pay progressively more to unlock the entire purchase?

sonicare
sonicare

Some of these private venture firms have massive amounts of capital, so not unheard of.

Xelm91
Xelm91

Bye nfs, bye sport games yay!

Hey_Jay
Hey_Jay

Here's an idea. No sale. No nothing. Just go away.

RZC88
RZC88

i hate this company as well i never liked  few games from them  there  hurting good games for real  

Mr_Bodywave
Mr_Bodywave

I doubt regulators would allow it, but if MS bought it and killed PS3/4 and Wii U versions of all their upcoming titles, it would seriously hurt or maybe even kill those consoles (which is why regulators wouldn't allow it).

PixelAddict
PixelAddict

I wonder if companies float information such as this if only for the slight stock bump it will create. . .

rhymesmatter
rhymesmatter

EA can happily go f* themselves!To hell with their stupid company!EA along with Activi$ion have been milking dry one games developer team after another ultimately leading to their destruction!I wish Activision shares a similar fate and i hope the new owners  extirpate the current staff and rethink the whole concept of the company...If they start to think about gamers more than they think about their pockets they will actually earn more $$ than they do by trying to rip us off with DAY 1 DLC policies or MULTIPLAYER-AZATION and MMO-AZATION of games.

PublicNuisance
PublicNuisance

I would love it if Valve or Gabe himself bought EA.

strayfies
strayfies

Well yeah I think the bid would have to be quiet by default.  EA is quite a property, nobody's going to approach with ease.  It's unlikely to sell though; most traders already understand that gaming is a volatile industry and the big publishers aren't likely to pay off within five years.

 

Liquidizing them could be an even bigger payoff but I've heard their management structure is labyrinthine, and might not be worth the headache. 

Altair_7
Altair_7

Why so many companies are up for sale .. no money in games..??

Hakkology
Hakkology

New one won't make it any better.

kungfuj0
kungfuj0

Where are you at, Mark Cuban???  Buy EA and do something good with them!!!

Darnasian
Darnasian

If Vivendi buys EA we're all fked :D

jhcho2
jhcho2

I'm having a fantasy whereby a billionaire tycoon would buy up EA and break it up to the individual companies which make up EA

Reuwsaat
Reuwsaat

The "Pachter" completely scrapped the whole article, that guy is a failure of a professional, anything you hear from him is complete BS or rehashed information that was previously confirmed by someone else.

cfstar
cfstar

EA ain't worth a fucking penny.

deadmonkey76
deadmonkey76

maybe micrososft will hopefully purchase them then pull the ps3 version of the EA and Bioware games off the shelfs lol

minty_cbo
minty_cbo

Yay!I loathe EA....Buy up franchises of my favorite games..and ruin them..Activison aswell... Hopefully..someone who actually games and doesn't just have deep pockets buys out either of them...(that was the most unrealistic thought I've had this year...lol)

WCK619
WCK619

"Asked about... Michael Pachter told GameSpot,"

why is Gamespot asking Michael Pachter about anything? That blowhard already gets too much attention without you asking him for BS.

drago17
drago17

Got this off of IGN's article on it in the comment section.  This person sums it up nicely.

BlinkFandango • 11 hours ago

SW:TOR is only part of the problem. While EA may scoff at the fact they were voted the worst company in America, I believe they stated that as long as they were making sales they didn't care, stockholders DO care about the image of the company as much as the revenue. The bad revenue came from SW:TOR and the bad image came from being voted the worst company in America. EA needs to wake up and realize they:

1) Shouldn't force people to use Origin on PC for their games

2) Shouldn't regurgitate the same franchises every year (especially the sports titles)

3) Shut down servers after a few years to force people into buying the newer versions of games to play online (I know 2k sports is worse, but it's bad for consumers, old games get played less naturally and I hate that I can't get the online achievements)

4) Shouldn't have ruined Bioware (Okay, that might not be EA's fault, but the fact that Dragon Age II sucked and all the controversy surrounding ME3, including Day One DLC and the ending, only occurred after EA bought them. Coincidence? I think not)

5) Should stop lying about how they "listen" to their consumers (the Euro 12 DLC was made because prices don't drop as fast on digital platforms like XBLA and PSN as the full retail version does, not to mention we haven't heard anything about Mirror's Edge 2, which is what consumers really want)

6) Get rid of those stupid online passes, don't complain about how you don't make money from used games right after bragging that Fifa is the bestselling sports game in history ever year.

WCK619
WCK619

who would want to buy the worst company in America?

hippiesanta
hippiesanta

don't let Evil Empire mikrosoft get it