Amazon Buys Video Game Producer
There were reports on news sites all over the world that Amazon might buy Electronic Arts (EA). Experts don’t think, though, that the company will actually make an offer for the video game maker. What happened before.
There have been rumours for a few months that Amazon wants to buy the video game company Electronic Arts (EA). On Friday, August 26, 2022, USA Today started a new wave of news coverage all over the world. So, the takeover is coming up soon.
A short time later, though, CNBC spoke up and said that sources who did not want to be named said that the rumours were not true.
Amazon said on Thursday that it had reached a deal to buy a network of primary care clinics called One Medical for $3.9 billion. This is part of its plan to become a major player in the industry.
EA Shares Shot Up
But, according to Forbes, the news from the rumour mill made EA shares rise for a short time. They went up almost 15% before the market opened after the first report by USA Today. But after CNBC denied the rumours, the stock prices went back to where they were before.
EA is one of the world’s ten largest game companies. FIFA and Madden NFL are two of the best-known and most-played games. About 580 million people around the world are EA customers.
As of the last market close, the company was worth $35.5 billion. So far this year, it has only lost about 3% of its value, which is much more than some of its competitors.
If Amazon bought the company that makes video games, it would be a big deal. The tech giant would become one of the world’s biggest game makers. After Microsoft bought the video game company Activision Blizzard for $68.7 billion in January 2022, there were rumours of a possible takeover.
Assumption Of The EA Takeover By Amazon Quite Justified
It is completely wrong to think that Amazon might be interested in EA, so not. After all, the online store has already bought a live streaming service for video games called Twitch. Also, Andy Jassy, the CEO of Amazon, thought last October that video games could become the biggest entertainment business in the world.
Amazon has not said anything about the rumours yet. EA also didn’t say much, but it did tell Reuters that it wouldn’t say anything about the rumours.
Since then, USA Today has put out a statement saying they’re sorry they broke the news about Amazon buying EA early.
GLHF, a gaming/e-sports news site and a content partner of For The Win, posted a version of this story on our website earlier today that didn’t follow our rules about using unnamed and unconfirmed sources. This story has been changed.
Whether the rumours are true or not, the takeover won’t be confirmed until either EA or Amazon makes an official statement. And we don’t have this information yet.