Electronic Arts may be in talks to sell to equity firms

One of the biggest names in gaming, Electronic Arts (EA) has been going through some rough times recently, especially with the low numbers on one of the most expensive games ever made – Star Wars: The Old Republic. According to the New York Post, the publishing giant has been approached by a couple of equity firms for potential sale of the company, KKR and Providence Equity Partners. The talks between EA and the firms are still at an early stage.One of the Post’s sources said, “It’s early days”. Another said that EA has made it known that it would do a deal at $20 a share. EA has suffered a 37 percent drop in its share prices this year, especially after the disappointing sales of Star Wars: The Old Republic.Many companies have seen problems recently, especially because of the increased interest of gamers in social and casual games, made by companies such as Zynga. Another main reason for the dip in EA’s stock prices could also be that Star Wars: The Old Republic will be going free-to-play soon, less than a year after its release. As of now, there has been no comment on the matter by either EA or the equity firms. So, this does not affect gamers in any way yet. It is interesting to note that Providence is also a major shareholder in Zenimax, which is the parent company of the makers of Elder Scrolls V: Skyrim, Bethesda.

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