Pachter says rumored Nexon buyout of EA 'cannot happen'

Forbes reported on a rumored takeover of Electronic Arts by Nexon earlier this morning. The magazine noted that EA shares spiked following a supposed bid by the Korean gaming giant.

Wedbush Securities analyst Michael Pachter weighed in on the rumors at GamesIndustry.biz, saying that the deal "cannot happen." He guesstimates that EA will balk at any such deal because "Nexon couldn't pull off a stock-for-stock deal [...] and would have difficulty financing an all-cash deal to make EA shareholders happy."

Pachter floats a few numbers in his analysis, and he also notes that EA CEO John Riccitiello isn't likely to cede control of the company to anyone outside of EA management.

TH