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Private equity firms KKR and Providence interested in acquiring EA – report

Thursday, 16th August 2012 14:28 GMT By Stephany Nunneley

EA has buyers interested in acquiring it, if a source close to the New York Post is to be believed.

The paper says “discussions are at an early stage,” with private-equity firms KKR and Providence Equity Partners, the later of which in 2010 provided $150 million of private investment in convertible preferred stock to ZeniMax Media, Bethesda’s parent company, and in 2007 it also invested $300 million in convertible preferred stock with the firm.

However, a source close to CNBC’s David Faber has denied Providence is looking to buy into the games maker.

“Sources tell me Providence has not spoken with EA and has no interest in buying company,” Faber tweeted.

EA has recently been buying shares back after a 37% drop over the year, and another source close to the matter told the NYP EA would be willing to sell at $20 a share.

Wedbush Morgan analyst Michael Pachter told the Post he expects EA’s stock to “more than double in the next 12 months.”

EA has responded to the NYP with a no comment “on rumor and speculation,” regarding the matter and calls to both KKR and Providence Equity Partners were not returned.

The news, whether true or not, has caused stock prices in EA to surge 9.9% to $14.38 a share.

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3 Comments

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  1. Dragon246

    EA definitely does not deserve a lot of the hate it gets, most of that is similar to like how COD is flamed everyday on net and still manages to sell more than any game in history.
    People forget they are a company and need to make a profit too.

    #1 2 years ago
  2. Strange Sultan

    @1 so that’s why they made “command & conquer” an F2P game ? i just came from youtube. people are raging there. you know F2P is nothing but a dirty money sucking tactic.

    EA wants to make a profit. i have no problem with that! i buy a game because i love it not because the company worked hard on it. but when they screw up the sequel i get angry. angry because they ruined something i love. any company tends to be greedy. but that’s not why gamers hate EA, they hate it because it ruined their games.

    i think people hate COD because it affected the gaming market. you see military shooters everywhere trying too hard to be as successful as COD. which is a waste of time and effort imo. COD has it’s roots deep in the industry and gamers are more familiar with it. i enjoy COD myself but i also wish to see more variety in the fps genre. and i don’t think multiplayer is a good selling point.

    #2 2 years ago
  3. Stephany Nunneley

    A source close to CNBC’s David Faber has denied Providence is looking to buy EA. Post has been updated to reflect this.

    #3 2 years ago