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EA is up for sale?

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Is EA up for sale

Quite a rumor is swirling around the tech world today. Supposedly EA is making preparatory efforts to sell their company. Furthermore, what adds credibility to this notion is that the “rumor” is being reported by the New York Post and not some random dime-a-dozen blog on the internet.

EA’s share prices have dropped a big 37% this year, but the rumors going around have aroused some interest in said stocks and have caused spikes around 5.5%. Market cap for the company currently sits around $4 Billion.

But what moves are EA making that might suggest a selling of the company? For one, the company has been buying back stock from investors, which is a move that major companies will generally make before throwing up their ‘for sale’ sign. The company has also been having limited to no success in the gaming market recently due to a lack of sales. Gamers are migrating to sub-sixty dollar game producing companies and free to play games as a means to conserve their wallets.

Only the future can tell if the company will indeed be forced to sell. EA refuses to comment on any such rumors or speculation.

[Ed - The rumors are very intresting indeed considering that fact that OnLive just made a shift to a "new" company. There are also some rumors that Vavle is looking into expanding into the cloud gaming market in conjunction with some of their other initiatives. Thinking about the situation and some of the actual facts it looks like we are in for a major shake up in the gaming market. One big suspect behind all of this is Microsoft. It was not that long ago that EA spoke out in favor of Microsoft and their push with Windows 8 whil OnLive was a potential competitor for Xbox Live and their new direction. It would not be surprising to see Microsoft pick up EA or help OnLive to reorganize in the same way they "Invested" in the Nook from Barnes and Noble. We expect to see some more information come to light in the comming week that will help clear up the situation and we would not be surprised at all to find Microsoft mixed in with this somewhere.]

Source NYPost

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Last modified on Sunday, 19 August 2012 18:12

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