Thu, Apr 26, 2012 | 18:35 BST

EA shares up after rumored Nexon takeover

EA shares are up after a South Korean newspaper rumored this morning Nexon has made a bid for EA. Shares spiked $1.22, or 8.1%, to $16.23 after a 52-week low. Nexon, which has offices in Japan, are the makers of free-to-play MMOs such as MapleStory and Combat arms. The firm’s market cap sits around $8.1 billion compared with EA’s $5.2 billion. If anything comes of this rumor the likely result would be Nexon purchasing a minor interest in the firm, as it would cost too much takeover EA, which is currently sitting on oodles of cash. Representatives for both firms have told MarketWatch it is neither’s policy to comment on rumors or speculation. Analyst Michael Pachter feels the rumor is rather silly, and outlines the reasons it will never happen through here.

8 comments

mickey2002
26/04/12, 5:16 pm

Has Nexon even got that kind of money o_0

Johnny Cullen
26/04/12, 5:19 pm

If anything, shouldn’t EA be buying Nexon and not the other way round?

Phoenixblight
26/04/12, 5:21 pm

Yeah that won’t be happening.

TheBlackHole
26/04/12, 5:29 pm

Given that Nexon are worth a lot more than EA… no.

ultramega
26/04/12, 8:19 pm

That’s hilarious. Made me laugh real hard. Hahaha. That’s almost embarrassing… that Nexon is worth more than EA. Even if it doesn’t really surprise me.

Talkar
26/04/12, 10:10 pm

I call BS on this. EA has been subject of countless rumors. Remember the rumor about how Disney was going to buy EA a couple of years ago?

roni1175
26/04/12, 11:16 pm

The rumors says its for merger or acquisition of 20% by Nexon.

If I remember correctly Nexon worth around 8bil while EA around 5.5bil

DSB
26/04/12, 11:23 pm

@7 I doubt it. With the kind of revenue they’re seeing, Nexon would have to be worth more than 8 billion. Usually you multiply yearly profits by about 8 and then add “the rest”.

EA’s assets are around 5 billion, so if they aren’t worth more than that, they’re in serious trouble.