Microsoft: No Plans to Acquire EA
Updated from Wednesday, Sept. 23
REDWOOD CITY, Calif. (TheStreet) -- A Microsoft (MSFT) spokesman said late Wednesday the company has "no plans to acquire" video game maker Electronic Arts (ERTS), according to a report from MarketWatch.
A Reuters report, citing information from traders, circulated Wednesday saying the software giant was interested in buying EA, the publisher of the Madden, Medal of Honor and FIFA video game series.
Shares of Electronic Arts rose $1.31, or 7.1%, to close at $19.83 on Wednesday. The stock fell 32 cents to $19.51 in after-hours trading.Although it was merely a rumor, an acquisition would boost Microsoft's presence in the video game space. The sector, however, has struggled to live up to its recession-proof billing, although this could mean an attractive valuation for M&A targets. U.S. video game sales fell in August for the sixth straight month, according to figures from NPD Group, and analysts highlighted disappointing sales for the latest game in the Madden series. EA, which was recently downgraded by Goldman, nonetheless has a potent weapon in its armory. The Redwood City, Calif.-based firm, which competes with Activision Blizzard (ATVI) and Take Two Interactive (TTWO), recently launched The Beatles: Rock Band game, which is expected to be a top seller this holiday season. Shares of Microsoft fell 6 cents in the regular session to end Wednesday at $25.71. The stocks gained 2 cents after hours. -- Written by James Rogers in New York.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV