Gaming juggernaut Electronic Arts is quietly seeking a buyer according to sources as reported by the New York Post. The firm has been in contact with private-equity companies KKR and Providence Equity Partners although discussions are reportedly still in a very early stage.
Share value in EA has dropped 37 percent this year although the stock closed up 5.5 percent yesterday, or 72 cents, at $13.81 following buyout talks.
The company’s market cap is around $4 billion as of writing and one source says they would be willing to make a deal for $20 per share. EA has been buying back stock from investors as of late, possibly as an early move ahead of a deal.
As evident by the dwindling stock prices, EA hasn’t had a ton of success as of late. Gamers simply aren’t buying as many $60 titles as they once were thanks largely in part to mobile and casual games that can be had for free. Furthermore, tablets have been wreaking havoc on handheld game sales which has put more pressure on developers.
Of course, these problems aren’t just affecting EA. Activision-Blizzard was reportedly shopping around for a buyer earlier this year although those talks have since fizzled out.
EA told the Post they don’t comment on rumors and speculation while Henry Kravis from KKR declined to comment. Representative Jonathan Nelson from Providence did not return the publication’s calls for comment.