Report: EA in Talks to Sell to Private Equity Firms

Publishing giant EA has apparently been approached by two private equity firms about a potential sale.

Sources close to the New York Post have claimed that the company was approached by private equity firms KKR and Providence Equity Partners over the possibilty of a purchase, but emphasised that talks are at an early stage.

One source said, "It's early days," but another added that EA has "made it known they'd do a deal at $20 a share." EA's stock has had a tumultuous ride so far this year, suffering a 37% drop. When trading closed yesterday shares were being sold at $13.09.

It's a difficult economic time right now, and many videogame companies have experienced similar stock falls to EA thanks to increased interest in casual and social games. With a third of the company's value disappearing so far this year though, it's unsurprising that potential buyers are being sought.

A possible reason for this is the current uncertainty regarding Star Wars: The Old Republic and its free-to-play future; the most expensive videogame ever made with a rumoured cost of around $200 million recently announced it was abandoning its subscription fee, less than a year after launching.

But what does this mean for the average gamer? At the moment, nothing. This hasn't been confirmed and even the claims state that any deal is still a long way off. But what is interesting to consider is the fact that Providence Equity Partners is a major shareholder in Bethesda's parent company, Zenimax. As a result, it's certainly a story worth keeping an eye on.

Luke Karmali is IGN's UK Editorial Assistant. You too can revel in mediocrity by following him on IGN and on Twitter.

Source : ign[dot]com