Videogame maker Electronic Arts Inc. (EA) is exploring a sale as the company struggles to grow its business amid competition from free online gaming sites, the New York Post reported, citing sources.
The paper reported EA has been approached by private-equity giants KKR and Providence Equity Partners about a potential deal.
Representatives for EA weren't immediately available for comment.
EA is the maker of such popular video games as "SimCity" and "Madden NFL" and had a market value of $4.17 billion as of Wednesday's close.
Shares climbed 17% to $15.25 in light premarket trading and are down 36% this year.
The paper quotes a source familiar with the company saying EA would do a deal at $20 a share. It last traded above that price in January.
EA has reported mixed results in recent periods as softer demand for console videogames has hurt margins and as it faces increased competition from free-access online games. Last month, EA reported fiscal first-quarter earnings fell 9% as the company's core revenue slipped.
The company is looking to transform its business model to better compete against rivals such as Zynga Inc. (ZNGA), which has expanded its business to better support Internet-based sales.
Fonte: http://online.wsj.com/article/BT-CO-20120816-705905.html
The paper reported EA has been approached by private-equity giants KKR and Providence Equity Partners about a potential deal.
Representatives for EA weren't immediately available for comment.
EA is the maker of such popular video games as "SimCity" and "Madden NFL" and had a market value of $4.17 billion as of Wednesday's close.
Shares climbed 17% to $15.25 in light premarket trading and are down 36% this year.
The paper quotes a source familiar with the company saying EA would do a deal at $20 a share. It last traded above that price in January.
EA has reported mixed results in recent periods as softer demand for console videogames has hurt margins and as it faces increased competition from free-access online games. Last month, EA reported fiscal first-quarter earnings fell 9% as the company's core revenue slipped.
The company is looking to transform its business model to better compete against rivals such as Zynga Inc. (ZNGA), which has expanded its business to better support Internet-based sales.
Fonte: http://online.wsj.com/article/BT-CO-20120816-705905.html