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Electronic Arts may be up for sale

Posted on august 20, 2012 by Bianca in games

Electronic Arts Logo

Game publisher Electronic Arts is reportedly in talks about a possible sale. The report came from the American newspaper The New York Post, which cited anonymous sources close to the company. According to those sources, investors such as KKR and Providence Equity Partners were interested, and an offer of around twenty dollars per share was said to be acceptable. Electronic Arts itself has not confirmed any potential sale.

The takeover rumor comes at a sensitive time. EA’s stock was under considerable pressure during that period, and investors were concerned about the publisher’s position. Traditional boxed game sales in retail had already been under pressure for some time, while the market was shifting more rapidly toward digital distribution, online services, and mobile games.

At the same time, Electronic Arts was not in a weak position across the board. In financial reports, the company showed that its digital revenue was growing quickly. Franchises such as FIFA, The Sims, and Battlefield, supported by downloadable content and online services, were expected to help drive the transition to a new business model.

Origin, Electronic Arts’ own digital platform, also played an important role in that strategy. EA was increasingly focusing on direct sales, digital add-on content, and online accounts, expecting downloadable games and online purchases to become more important than physical games sold in stores within a few years.

For now, however, it remains speculation. No official sale announcement has been made, but the report does show how much pressure large game publishers are under. For Electronic Arts, the coming years are not only about releasing new hit games, but also about how quickly the company can complete the shift toward a predominantly digital market.