A ridiculous rumor making the rounds today suggests that MMO company Nexon was in talks to buy Electronic Arts. The report, which began with a Korean newspaper report, caused EA's stock to go crazy during trading today, but anyone familiar with both companies knows that this story is rooted in fantasy. Nexon is best known for its various MMO games, but the most popular here in the United States is Maple Story. IGN has more on the stock rally here, as does Bloomberg.
GamesIndustry International also weighs in on the story, with the help of Wedbush analyst Michael Pachter, who calls the whole thing a "silly rumor." According to their math, Nexon's market cap is around $8 billion, and their CEO owns over 50 percent of the company's stock. Their float is around $1.5 billion. If Nexon wanted to buy EA – even at a low price of $20 per share – it would have to raise its market cap to $14 billion. The stock-for-stock trade would probably have to be a hell of a lot higher for EA to be interested too.
At the end of the day this rumor is about as realistic as a bigfoot sighting in downtown Seattle…
Thanks to Andrew Eisen for the multiple tips.