USA Today and CNBC have different reports.
Media from the video game industry has been in a downward spiral on the 26th of August in the wake of a USA Today report claiming Amazon was preparing to submit an offer to buy publishing giant Electronic Arts. However, unconfirmed reports have emerged from CNBC, which state there are no acquisition plans currently in the works.
America Today’s news report came via Swedish news agency Good Luck Have Fun, which claimed that its sources knew of a possible formal deal from Amazon to purchase the publisher of the FIFA 23 and Star Wars: Jedi Fallen Order.
Then, a few hours later, CNBC anchor David Faber declared on live (below) that there’s no plan from Amazon to buy Electronic Arts. “I have talked to some people who would know if something was going on, and they say there’s nothing going on,” Faber stated. “These are people who would be involved.”
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
EA shares had increased by 15 percent during premarket trading in the wake of news of the USA Today report but have since dropped, and at the time of writing, they are trading at around 6.6%.
EA has been the focus of numerous acquisition rumors recently, as gaming, in general, has witnessed them become commonplace. EA President Andrew Wilson said earlier in August that Electronic Arts would be open to being bought; however, it was clear that Electronic Arts could not be “in a stronger position as a standalone company.”
Initial Story Based on a new news report, Amazon will soon announce its plan to buy Electronic Arts.
EA is a massive publisher of big games like Battlefield, Need for Speed, Apex Legends, and numerous sports titles like FIFA and Madden. Recent reports at the beginning of this year have led to talk of EA looking to sell to a more prominent company, like Apple, Disney, or Amazon. If this report is accurate, then it is likely that Amazon is nearing making public statements about its offer.
The rumor originates from USA Today and is based on information from GHF sources. According to the article, Amazon might announce this announcement later today, within a few hours.
If this is true, this is the case; the timing is fascinating. Just a few weeks ago, EA announced that it intends to remain an independent company as the CEO Andy Wilson said the publisher is in an “incredible position.” It’s also worth noting that EA has made a significant deal by buying racing gaming company Codemasters. The whole thing results from an industry-wide drive for acquisitions and mergers. Microsoft has thrown down billions of dollars to purchase ZeniMax Media and Activision Blizzard; Sony recently concluded its acquisition of Bungie. In addition, Embracer Group continues to buy as many studios and IPs as possible.
With that said, it’s just an unsubstantiated rumor. At present, it may come to pass as untrue.
We will notify you when further information is made available.
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