By
Chimamanda U. Martha
March 11th, 2024
Sources familiar with the matter said that Amazon has managed to outbid all other heavyweights and could make an official announcement later today.
As per the latest development, tech behemoth Amazon (NASDAQ: AMZN) is currently in the race to acquire videogame publishing giant Electronic Arts Inc. As per sources familiar with the matter, Amazon might make an official announcement later today.
Amazon and Electronic Arts
However, there’s no idea about what the bid offer shall be. As the rumors floated, shares of Electronic Arts Inc (NASDAQ: EA) jumped by more than 6% in the pre-market. As of Thursday’s closing, the EA stock was trading at $127.
Over the last few weeks, there have been several takeover rumors for EA floating in the market. These rumors suggested that companies like Disney and Apple have also been among the interested parties. However, sources familiar with the matter said that Amazon has managed to outbid a large number of heavy hitters.
Electronics Arts is one of the most popular video game publishers in the market. It has some of the most popular gaming titles like FIFA, The Sims, Madden NFL, Appex Legends, under its belt. Also, sources said that Amazon shall be using EA franchises such as Dead Space, Dragon Age, and BioWare’s Mass Effect, as settings of its Amazon-made TV series. Speaking to EuroGamer, an EA spokesperson said:
“We don’t comment on rumors and speculation relating to M&A [mergers and acquisitions]”.
The Gaming Wars
Gaming seems to be one of the most lucrative businesses for the coming decade amid rising demand. Over the last year, almost every tech giant has been making a move in the gaming space with greater curiosity.
Microsoft has so far emerged as the leader when it comes to making big acquisitions in the video gaming industry. Microsoft acquired Bethesda for a massive $7.5 billion and brought it under its popular Xbox. Also, its deal to acquire Activision Wizard for a staggering $70 billion is inching closer to completion.
Currently, Amazon has its business spread across almost every other sector except for gaming. If it manages to strike a deal of acquiring Electronic Arts, it will give them a greater footprint in the gaming market. Electronics Arts has dozens of development studios worldwide and employs more than 12,900 people. Some of the popular studios it owns are home to Dragon Age and Mass Effect, BioWare, and others.