[Update] Rumours say Microsoft could buy EA

Update: Microsoft denies speculation

If this morning’s news that Warner or Viacom might be interested in buying ailing publisher THQ, now rumours on the stock market are pegging EA as a potential acquisition target – from Microsoft.

According to Reuters, shares in EA jumped over than 4 per cent to $19.36 today on as the chatter spread.

"There’s talk that Microsoft might be interested in acquiring Electronic Arts. It’s unsubstantiated chatter, but it’s out there," the wire site quotes Frederic Ruffy, options strategist at WhatsTrading.com, based in New York, as saying.

Reuters added that ‘a London-based trader also cited similar talk as making rounds in Europe’.

Around a year ago speculation briefly circled that Disney was interested in buying Electronic Arts.