Rumours have been circulating that Amazon wants to take over games maker Electronic Arts (EA). However, analysts may now be backtracking from the claim.
EA is an American video game company with a HQ in California. Founded in May 1982 by Apple employee Trip Hawkins, the company was a pioneer of the early home computer game industry.
EA’s game franchises include Battlefield, Need for Speed, The Sims, Medal of Honor, Command & Conquer, Dead Space, Mass Effect, Dragon Age, Army of Two, Apex Legends, and Star Wars, as well as the sports titles FIFA, Madden NFL, NBA Live, NHL, and EA Sports UFC.
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Why would Amazon want EA?
A takeover might be a smart business ploy from Amazon, which is making big moves in television. After the success of The Witcher and Arcane on Netflix — shows built around big video games — Amazon could use EA’s franchises as settings for new shows.
What have the rumours done to EA’s share price?
Speculation that Amazon was about to make a bid for EA boosted the game maker’s share price by around $10 – up to $135.90. But later in the day it fell back slightly as doubts grew.
What is the latest on the rumoured takeover?
American news outlet CNBC Now’s David Faber has now claimed that “this is not going to happen,” confirming that Amazon is not going to make a bid for Electronic Arts. However, rumours have been circling online for weeks about a potential EA buyout, with Apple, Disney, and Amazon all listed as potential buyers.
How big would a combined Amazon and EA be?
Electronic Arts’ net worth as of August 23, 2022 was $35.62bn, with Amazon valued at a huge $1.389trillion. The combined company would be enormous.
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