Why so many rumors in the video game space about acquisitions?

Because apparently they work.  THQ Inc. (THQI) was up 13% yesterday as a result of a rumor that Viacom and others are interested in buying them.  But as one poster pointed out, why would THQ raise 100 million in a convertible offering one month prior to a proposed buyout?  It shouldn't make any sense.  Yet, options contract trading spiked up and so did the stock price.

Today, Electronic Arts (ERTS) is up 8% on a rumor that Microsoft is interested in buying them.  This would likely result in EA's revenues being cut by well over half since Microsoft would likely not be interested in publishing for Sony and Nintendo consoles.  Yet, options contract trading spiked up and so did the stock price.

In a world of make-believe rumors, the trading effect is very real.  A website called theflyonthewall.com seems to be the consistent source for ridiculous rumors like this.  Despite not making much sense, these large company market caps are moving as a result of these stories.  This should tell us two things:

1) the stock market has once again become a speculators ballpark, awash with a blend of cash and thoughtlessness.

2) theflyonthewall.com deserves some serious market oversight.  Where are they getting their information and are they somehow profiting from distributing the information, beyond their subscription revenue?  Time and a close watchful eye will tell.

In the least, it's time we start tracking what exactly they are spreading and how often it turns out to be true or false.