US game giant EA has contacted several private-equity firms to look for a sale of the company

Source: Internet
Author: User
Tags closed company economic game game companies gaming gaming company giants

the source said that EA has been associated with KKR, Providence and other private-equity giants have come in contact to discuss the possibility of selling the company. But he also stressed that the current negotiations are still at an early stage.

Another source familiar with the situation said that EA intended to sell the company at a price of 20 dollars per share. EA shares have fallen 37% per cent since this year. Yesterday, EA shares closed at 13.09 dollars.

It is now a difficult economic time, coupled with the impact of leisure and social gaming, where many video game companies have fallen as well as EA. Given that EA's market capitalisation has shrunk by One-third this year, the company's search for a sale is not groundless.

One reason for the decline in the market value of EA may be that the company's blockbuster game "Star Wars: The Old Republic" is uncertain. "Star Wars: The Old Republic" was rumored to cost as much as $200 million, the most expensive video game ever developed by EA. But the game went public for just a year and EA announced that it would waive the charges.

It's unclear how the deal will affect other gaming companies. After all, the news is still in the rumored phase. Notably, Providence, one of the acquirers, is the largest shareholder of the gaming company's Bethesda parent company ZeniMax, and does not rule out accepting another gaming company.

 

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