Videogame maker Electronic Arts Inc. (EA) is exploring a sale as the company
struggles to grow its business amid competition from free online gaming sites,
the New York Post reported, citing sources.
The paper reported EA has been approached by private-equity giants KKR and
Providence Equity Partners about a potential deal.
Representatives for EA weren't immediately available for comment.
EA is the maker of such popular video games as "SimCity" and "Madden NFL" and
had a market value of $4.17 billion as of Wednesday's close.
Shares climbed 17% to $15.25 in light premarket trading and are down 36% this
year.
The paper quotes a source familiar with the company saying EA would do a deal
at $20 a share. It last traded above that price in January.
EA has reported mixed results in recent periods as softer demand for console
videogames has hurt margins and as it faces increased competition from
free-access online games. Last month, EA reported fiscal first-quarter earnings
fell 9% as the company's core revenue slipped.
The company is looking to transform its business model to better compete
against rivals such as Zynga Inc. (ZNGA), which has expanded its business to
better support Internet-based sales.