Earlier today, reports began circulating that Amazon was going to put in on offer to acquire Electronic Arts. The tech giant was expected to announce its intention later today. Although this would have been a formal bid. The potential acquisition was first reported by Kirk McKeand of GLHF. However, since the reports surfaced, sources told CNBC have dashed the rumor.
This isn’t the first time we’ve heard about EA being purchased, though. There have been previous rumors of some of the other biggest technology companies eyeing up EA. That includes the likes of Apple and Disney but it looks like Amazon will be the first to make a move.
However, the rumor appears to be merely a rumor. According to sources who spoke with CNBC’s David Faber, no such offer has been made. The reports and subsequent denial have sent EA’s stock prices through a wild roller coaster ride.
Amazon is not going to make a bid for Electronic Arts, sources tell CNBC's @DavidFaber. Shares of $EA surged earlier on a report citing a "rumor." pic.twitter.com/k7wk0Fy7xv
— CNBC Now (@CNBCnow) August 26, 2022
It would be a benefit to Amazon’s gaming efforts
The idea of Amazon purchasing Electronic Arts does make sense. Despite being as huge as it is, Amazon has struggled to have the same impact in the games industry as it has elsewhere. Many of its big projects like like Crucible and the Lord of the Rings MMO have been canceled before launch. Its main success stories have come through New World and Lost Ark, both of which have become some of the most popular MMOs on the market.
In contrast, EA has a never-ending list of appealing IPs. Over its 40-year history, EA has created some of the most recognizable names in gaming. It owns the rights to Battlefield, Need for Speed, The Sims, Command & Conquer, Apex Legends, and a wide range of sports games. Acquiring a publisher as stacked as Electronic Arts would certainly make Amazon’s job of breaking into the industry much easier.
