Microsoft could bid for EA
But experts unsure on take-over rumour
First THQ and now EA, the giant publisher's stock soaring over 5 percent today amid speculation that none other than Microsoft could launch a take-over bid for the gaming behemoth.
While EA stock reached nearly 20 USD upon the news, Microsoft has also been given a boost by the debate, rising nearly 1 percent in US trading.
"There's talk that Microsoft might be interested in acquiring Electronic Arts," teased Frederic Ruffy, an options strategist at WhatsTrading.com. "It's unsubstantiated chatter, but it's out there."
Cowen exec Doug Creutz has said that the take-over is hugely unlikely, however, stating that EA simply makes too much of its revenue from non-Microsoft formats. "There is simply no way the math works due to the massive hit to EA's revenue and earnings post acquisition. This is even assuming such a deal would pass regulatory muster, which we find highly doubtful."
Similar rumours are also said to have been detected by business-types working in Europe. Thanks Reuters.

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