[NX] [EA] Electronic Arts Stock Price Surges. Why?

Electronic Arts (NASDAQ: EA)’s share price soared today by 6.13%, the most the stock has risen in the last four months. Average price ended the April 26 NASDAQ trading day at US$15.93. But why? Because reports are emerging that Tokyo-based free-to-play publisher Nexon Co. Ltd. are in talks to purchase the company. In the mean time, Nexon’s stock fell (TSO:3659) fell 2.31% to close the April 26 TSO trading day at 1,524JPY per share.

It is said that it was Nexon which contacted EA to try to work something out. Both companies are refusing to comment on the reports and rumours. “Nexon has a policy of never commenting on rumors,” the company said in an e-mailed statement. Jeff Brown, an Electronic Arts spokesman, said in an e-mail that the company doesn’t comment on rumors or speculation.

In the calendar year ended December 31, 2011 Nexon reported revenues of US$1.12 billion while EA is expected to report revenues of US$4.17 billion for the fiscal year ended March 31, 2012. EA has a net worth of US$4 billion while Nexon has a net worth of US$6.8 billion.

Experts are saying that the deal either wasn’t even being considered in the first place or that it won’t work out and I agree with their reasoning. Research different experts’ views on this. We’ll just have to wait for these rumours to be dispelled or confirmed and see how this acquisition discussion ends up.

Advertisements

Posted on April 26, 2012, in Acquisition, International Nexon. Bookmark the permalink. 1 Comment.

  1. what what what WHAAAAAAAAAAAAAAAAAAAAAAAAAAT.
    I mean, this might be a good thing, yet a bad thing.
    Nexon vs Blizzard
    EA vs Activision

    Activision and Blizzard merged.
    Now if EA and Nexon fuse, or Nexon takes over EA, maybe they stand a shot against their common enemy …

    or … maybe I have just played a liiiiitle bit to much games and see competitors as enemies

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: