Electronic Arts' $50 billion go-private talk boosts European videogame stocks

Shares of European videogame makers Ubisoft UBIP.PA, Embracer EMBRACb.ST, and CD Projekt CDR.WA gain between 2% and 4% after media reports of U.S. rival Electronic Arts' EA.O potential $50 billion buyout fuel sector optimism

"There is a read across the video games sector as the EA deal signals there is long term value in the industry", analyst Edward James from Cantor says

Still, neither Ubisoft nor Embracer are targets for a similar deal and any rise is set to be short term unless those companies can show improved performance, James adds

The EA deal "would reinforce Ubisoft's status as one of the last major actors of the sector listed on a stock market," Midcap analyst Corentin Marty says

Marty, however, points out at Tencent's 0700.HK large participation, especially after the recent join venture creation, as limiting speculative interest