Microsoft Takeover Rumors Send EA Shares Up

Videogame maker Electronic Arts has experienced a surge in the value of its stock following speculation that computer giant Microsoft is considering a takeover of the company. However, both companies have declined to make any comments on such an arrangement and analysts remain largely skeptical about how the acquisition would be practical.

To some analysts, Microsoft acquiring Electronic Arts makes no sense at all because of the fact that Microsoft is developing newer forms of videogame technology, making an acquisition of a traditional videogame company pointless. This potential roadblock has not stood in the way of trading, with EA’s shares climbing 8.9 percent to $20.17 over the last several days.

EA has also been helped by the general consensus that the videogame industry will be quicker to recover compared to other industries, bolstering investor confidence in EA shares. Most of EA’s gains, though, seem to be motivated purely by the possibility of a Microsoft takeover judging by the types of contracts that have been pursued by investors.

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