Takeover potential adds appeal

Article Excerpt

ELECTRONIC ARTS, $129.26, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 279.9 million; Market cap: $35.7 billion; Yield: 0.6%) is now reportedly pursuing a sale or merger and has spoken to numerous interested parties. These include Disney, Apple and Amazon. The videogame industry has experienced various major transactions so far in 2022, including Take-Two’s $12.7 billion acquisition of Zynga and Microsoft’s $69 billion deal for Activision Blizzard. The chance of a takeover bid in and of itself is not reason enough to buy the stock. But it does add to the stock’s appeal. Electronic Arts is a buy. buy…

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