Electronic Arts Jumps the Most in Six Months on Takeover Talk

Electronic Arts Jumps the Most in Six Months on Takeover Talk
A video screen for Electronic Arts Inc.'s new Medal of Honor game during the Electronic Entertainment Expo (E3) in Los Angeles. Photographer: Jonathan Alcorn/Bloomberg

Aug. 16 (Bloomberg) -- Electronic Arts Inc., the second-largest U.S. video-game publisher, rose the most in more than six months after the New York Post reported that the company is exploring a sale.

EA rose 7.1 percent to $14.02 at 9:44 a.m. in New York. The stock climbed as high as $14.32 earlier in today’s session, marking the biggest intraday gain since Feb. 2.

The company is interested in doing a deal at $20 a share and has been approached by private-equity firms, the Post reported, citing unnamed people familiar with the discussions. The talks are still in early stages, the newspaper said.

EA shares had slumped 36 percent this year through yesterday as it struggled to shift to Internet-based video games. Chief Executive Officer John Riccitiello is adding online titles to reduce the company’s reliance on declining sales through retail stores.

Jeff Brown, a spokesman for Redwood City, California-based EA, didn’t immediately respond to requests for comment.

To contact the reporter on this story: Nick Turner in New York at nturner7@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net