US – Amazon in rumoured bid for Electronic ArtsBy Lewis - 26 August 2022
Rumours have flown back and forth today concerning the possible buyout of the video games and esports brand, Electronic Arts, by online retail giant, Amazon. The most recent stories from news outlets appear to quash the idea of a takeover, however that hasn’t stopped Electronic Art’s share from soaring on the possibility of the deal progressing.
EA shares had jumped 15 per cent in premarket trading after the report from USA Today on Amazon’s takeover offer for the “FIFA” and “Apex Legends” owner. After contacting Amazon, outlets walked back the finality of the agreement and since then EA’s share have fallen back to 6% of their pre-trading value.
EA had a market value of $35.5bn as of last close, having lost about three per cent of its value so far this year. Earlier this month, EA forecast quarterly adjusted sales below estimates, with Chief Financial Officer, Chris Suh, saying that the company was not completely immune to the recession. Amazon’s own attempts to enter the video games sector have been less than spectacular, despite frequent attempts, making a bid for EA plausible, especially as the company is reportedly sitting on a $37bn cash stockpile that’s ripe for further acquisitions and takeovers.