EA to be bought by Nexon? Why the deal "cannot happen" according to Pachter

EA Spikes; Report South Korea's Nexon Makes Takeover Bid

Electronic Arts shares are trading higher Thursday morning on a report that apparently originated with a South Korean newspaper that said the South Korean game company Nexon has made a bid for EA.

The rumor has been passed along this morning via a Bloomberg video report, among other places.

Not a lot to go on here just yet, but EA shares are responding strongly to the rumor: the game maker’s shares have spiked $1.22, or 8.1%, to $16.23. The stock lately has been trading close to a 52-week low, as it continues to struggle through a transition to switch more of its business to digital distribution and away from the traditional shrink-wrapped console game market.

EA has a market cap of about $5 billion.

Source: Forbes