(Adds analyst comment, updates share price)
NEW YORK, Sept 23 Shares of Electronic Arts Inc
ERTS.O jumped more than 8 percent on Wednesday on
unsubstantiated talk that Microsoft Corp (MSFT.O) may want to
buy the video game publisher, but an analyst poured cold water
on the idea.
"There's talk that Microsoft might be interested in
acquiring Electronic Arts. It's unsubstantiated chatter, but
it's out there," said Frederic Ruffy, an options strategist at
WhatsTrading.com in New York.
But Trip Chowdhry, an analyst at Global Equities Research,
said Electronic Arts was not on Microsoft's "radar screen"
based on his industry contacts.
"Our contacts just don't see Microsoft buying Electronic
Arts, no synergies whatsoever, and also not Microsoft's
corporate primary focus right now," Chowdhry wrote in an
Last year, Electronic Arts, the publisher of popular titles
like "Madden" football, unsuccessfully pursued a buyout of
rival video game company Take Two Interactive Software
The Redwood City, California-company, which has a market
value of $6.5 billion, is frequently named by traders as a
target for Walt Disney Co (DIS.N) and Time Warner Inc (TWX.N).
Electronic Arts' shares were up 8.1 percent at $20.01 in
afternoon Nasdaq trading. Microsoft shares gained 1.1 percent
An Electronic Arts representative was not available for a
comment. A Microsoft representative declined to comment.
On Tuesday, the stock of THQ Inc THQI.O surged 13 percent
as rumors swirled that the smallest of the major U.S. video
game companies might be the target of a takeover. Analysts said
those types of rumors come up about once every quarter.
(Reporting by Ellis Mnyandu and Anupreeta Das; Editing by
Theodore d'Afflisio and Maureen Bavdek)