Electronic Arts Probed on Options
Electronic Arts Inc., the world’s biggest video-game publisher, said the Securities and Exchange Commission requested documents related to the company’s practices in awarding stock options.
The request covers grants dating to Jan. 1, 1997, Electronic Arts said Wednesday in a regulatory filing. The Redwood City, Calif.-based company said it intended to cooperate with the inquiry.
Electronic Arts is the fourth and biggest computer-game maker to be probed by the SEC to see whether it backdated options to boost their value. Activision Inc., THQ Inc. and Take-Two Interactive Software Inc. have disclosed reviews in the last three months. In August, Electronic Arts said it found no evidence of backdating when it reviewed grants going back 10 years.
Electronic Arts disclosed the probe after the close of regular trading, where its shares rose $1.71 to $56.01.
The stock fell to $55.35 in the after-hours market.
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