Electronic Arts Stock Jumps on FIFA Video Game Maker Takeover Speech
Updated 2:35 PM EST
electronic arts (EA) – Get the report from Electronic Arts Inc. Shares surged in pre-market trading on Monday amid reports the video game maker may be considering selling itself in a takeover and held talks with a number of potential buyers.
Puck News, a digital media website launched last year, said the creator of the FIFA and NBA 2K football franchises had held talks with Disney. (SAY) – Get the Walt Disney Company reportAmazon (AMZN) – Get the report from Amazon.com Inc. and apple (AAPL) – Get the Apple Inc. report.while NBCUniversal owner Comcast (CMCSA) – Get the Comcast Corporation Class A Common Stock Report floated the idea of merging its media division with the video game maker.
The report comes as Microsoft (MSFT) – Get the Microsoft Corporation report seeks to supplement its $69 billion Activision Blizzard (ATVI) – Get the Activision Blizzard Inc report amid an investigation into the deal by the Justice Department, which is looking into the allegations and issued a grand jury subpoena last month, following options purchases by three different investors – Barry Diller, David Geffen and Alexander von Furstenberg – just before Microsoft’s proposed takeover was announced in January.
The U.S. Federal Trade Commission is also reviewing the deal, Activision said in March, while Microsoft seeks approvals in at least 17 different jurisdictions before the deal can close next year.
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Interactive Take-Two (TWO) – Get the report from Take-Two Interactive Software Inc.meanwhile, has closed its $12.7 billion takeover of Farmville maker Zynga (ZNGA) – Get the report from Zynga Inc. earlier Monday as Grand Theft Auto looks to leverage its presence in the mobile sector.
Electronic Arts is also working under new chief financial officer — and former Microsoft executive — Chris Suh, who took over in March following the departure of Blake Jorgensen.
Electronic Arts shares rose 2.8% in early Monday afternoon to change hands at $134.42 apiece, a move that would nearly push the stock into positive territory for the year.
Earlier this month, Electronic Arts said current quarter sales would likely fall to around $1.44 billion as gamers spend a few hours in front of their consoles in a post-pandemic world.
The forecast has also been complicated by the loss of its three-decade deal with FIFA, world football’s governing body, which was worth around $150 million a year.
Electronic Arts will continue to produce a FIFA 23 version of its flagship game, but will no longer have exclusive rights to the franchise after the World Cup later this year in Qatar.