Maeil Business, a major South Korean business publication, first reported the possible takeover earlier this week, citing unidentified industry officials.
“Nexon has a policy of never commenting on rumors,” the company said in a statement. A spokesperson from Electronic Arts also refused to comment.
Shares of Electronic Arts responded strongly to the rumour, jumping 8.1% to $16.23 during the Thursday trading day. However, as the rumour was met with strong denial by all parties involved, EA’s shares lost nearly half of their gain during Friday trading.
Wedbush analyst Michael Patcher believes such a takeover is unlikely, and calls the rumour “silly”.
Speaking to GameIndustry International, Mr. Patcher said EA’s management would likely reject such an offer because Nexon could not pull off a stock-for-stock deal due to its smaller size and likely does not have the cash on hand to do an all cash deal.