Amazon told CNBC that it is not putting in a bid to buy Electronic Arts following a rumor that it had already done so. Ironically enough it was reported that EA stock shares saw a spike after the rumor began so perhaps both parties ought to consider a deal.
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
People on social media have even commented on the plausibility of such a deal as it could significantly bolster Amazon’s Luna gaming service. A report from May is also adding fuel to the rumor. In the paywalled report, it was said that EA had been in talks for a potential sale. Amazon, Apple, Comcast-NBCUniversal, and Disney, were all named as possible buyers. However, Andrew Wilson (EA CEO), has downplayed all of this in EA’s most recent earnings call.
“First, I’m sure you don’t expect me to comment on rumors and speculation from some small red media outlets,” he responded. “But be that as it may, I would tell you, I think we are in an incredible position. We’re soon to be the largest standalone independent developer and publisher of interactive entertainment in the world.
Regardless, it is possible that this is not the end of the story. The gaming industry has already seen its share of buyouts and mergers in 2022 so it’s still possible that something is in the works for EA.
Source: VGC