Old titles, very little R&D, dozens of bad acquisitions, poor management, and almost no earnings - I can see why rumours of a buy-out by private equity funds are circulating. EA shares jumped up sharply as a result of these unconfirmed claims. Out of curiosity, I read the financial reports for the last two quarters. What I can't see in there is any compelling reason why investors would want to take the risk. EA is in trouble. But, in the current economic climate I suspect that this rumour will end up being just another rumour.
I'd like to be proven wrong though :-)
The rumour mill is certainly going into full swing on this one. Just in the past couple of days there has been a lot of industry discussion and stock analysis. Whether this has all come about from a rumour created by one source, or perhaps even EA attempting to boost its stock prices, who knows.
Meh I am not sure they will get bought out, but a leadership change is sure to be coming. EA has a massive portfolio, the right person could turn it around.
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