Viacom rules out EA takeover
Responding to recent speculation, Viacom boss Sumner Redstone states that he has no intention of targeting EA for a takeover.
According to a recent Reuters report, Viacom Chairman and Chief Executive Sumner Redstone has gone on the record to say that Electronic Arts would be too expensive for Viacom to consider making a takeover bid. Redstone, who owns a controlling stake in Midway Games, was responding to recent speculation that EA--potentially valued at more than $20 billion--would make a good acquisition for a media conglomerate such as Viacom.
"We have looked at the obvious companies like Electronic Arts, which is clearly the leader in the field, but their price is so high it would be dilutive to our earnings," said Redstone at a conference in New York. "We have ruled it out."
EA has not commented on the recent speculation at this time.
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