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Electronic Arts, ESPN in Pact

EA will market video games using ESPN content and personalities.
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Electronic Arts

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was up 4% Tuesday morning after the company bagged a licensing deal for its video games with

Disney's

(DIS)

ESPN.

EA said the pact gives it access to ESPN content and sportscasters for use in video games starting next year. Terms of the deal weren't disclosed although published reports said EA committed to pay ESPN $850 million in cash and purchased advertising over the next 15 years.

ESPN-related content will be used across Electronic Arts' product lines in console, handheld, PC and wireless games beginning in 2006.

The deal is a defeat for

Take-Two

(TTWO)

, a rival video game programmer that had previously sold games in a co-branding pact with ESPN. Its shares fell $1.49, or 4.3%, to $33.35 Tuesday morning.

Electronic Arts shares were up $2.58 to $62.42.