Reports that Amazon plans to offer to buy EAs are inaccurate, according to new information.
Speaking on CNBC, reporter David Faber said “I’ve talked to a few people who would actually know if something is going on, and they say nothing is going on.” That was in response to a spike in EA’s stock price following a USA Today For the Win. (opens in a new tab) today’s report, which stated today that Amazon will formally announce its offer to acquire EA sometime later today, having made the offer at an earlier point in time.
EA shares rose 15% in the wake of that report, with Axios’ Sara Fischer suggesting to CNBC there was “a little fire” (opens in a new tab) to the rumour. However, the share price has since started to fall again, as more details emerge.
Amazon isn’t going to bid for Electronic Arts, sources tell CNBC’s @DavidFaber. Shares of $EA rose earlier on the back of a report citing a “rumor”. pic.twitter.com/k7wk0Fy7xvAugust 26, 2022
The offer, if ultimately fulfilled, would see Amazon potentially acquire the company behind Apex Legends, Madden NFL, Battlefield and many more blockbuster titles, putting them in a major spot in the gaming industry.
This is not the first time that acquisition rumors have swirled around EA. Earlier this year in January, Activision Blizzard CEO Bobby Kotick revealed that his company had considered a merger with EA, joining forces as one massive entity, before Microsoft acquired Activision Blizzard.
Just earlier this August, in fact, EA CEO Andrew Wilson was asked by shareholders and investors about the possibility of EA being acquired by an outside company. Wilson said that while he was “confident and excited about our future,” he actually didn’t rule out considering outside acquisition offers.
If Amazon makes a formal offer to acquire EA, as For the Win reports, then we’ll have to wait and see if two things happen. First, EA shareholders will need to vote on whether the acquisition goes ahead. Second, the acquisition will need the approval of the US government, to see if it is classified as a monopoly. If not, then the path is theoretically clear for Amazon to acquire EA.
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