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Tuesday, July 16, 2024

Reports of Amazon’s Takeover of EA Refuted

  • Amazon was reportedly expected to make an official offer to acquire Electronic Arts.
  • CNBC has negated those rumors.

Amazon could be interested in buying one of the world’s biggest video game publishers.

The tech giant was expected to make an official offer to acquire Electronic Arts on Friday, according to a USA Today report. CNBC has since refuted the rumor, but the idea isn’t far-fetched.

Earlier this year, several outlets reported that Electronic Arts, known for titles like Madden NFL and Apex Legends,” met with NBCUniversal about a takeover, but talks fell through. EA was also said to have held discussions with Amazon at the time, as well as other giants like Apple and Disney.

Following reports of a possible takeover, shares of EA surged more than 14% in pre-market trading. After CNBC’s update, shares fell back down.

Amazon, which already owns streaming service Twitch and recently launched cloud gaming service Luna, wouldn’t be the first technology company interested in expanding its gaming segment this year. 

  • In January, Microsoft entered a $69 billion agreement to acquire “Call of Duty” publisher Activision Blizzard. The acquisition is currently under review by the Federal Trade Commission. 
  • In May, Take-Two Interactive completed its $12.7 billion acquisition of Zynga.

EA’s Evolution

The takeover rumors come as EA undergoes some major changes and a little tension with its customers.

EA ended its 30-year partnership with FIFA in May, but announced an extension of its deal with MLS on Tuesday.

Earlier this year, Electronic Arts CEO Andrew Wilson stated developer DICE will be “rethinking the development process from the ground up” for “Battlefield 2042” after the initial launch contained bugs and glitches that prevented players from advancing.

EA reported $1.8 billion in Q1 revenue.

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