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.