Amazon’s reported offer to buy EA debunked [UPDATE]

UPDATE: CNBC are countering by saying there will not be a bid, debunking the previously reported buyout of EA by Amazon.

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

Original story below…

Rumours of an EA buy out have been circling for quite some time with Disney, Amazon, and Apple all in the frame, but if the rumours are true it’s Amazon who are about to make a formal bid. GLHF‘s sources are suggesting that the offer will be announced later today, although formal completion will take many months.

Amazon has been trying to break in to gaming for a good few years with very little success. A Lord of the Rings MMO was cancelled, Crucible got shut down a few weeks after launch, and its streaming service Luna has failed to capture any meaningful market share. Other games and studios were shut down by the company before they even launched, including Breakaway.

Buying EA seems like a good move for Amazon and perhaps for consumers, as Amazon might offer discounts on EA games from their online store front. Buying EA would also give Amazon a massive back catalogue of games including all those belonging to Codemasters who were acquired by EA last year. It would also mean that Amazon are free to create TV shows and movies based off the EA IP’s, so we may finally get to see a Dead Space movie. Shows and movies that are currently in production, such as Mass Effect, should be unaffected.

Why don’t Google and Amazon understand gaming?

Given the market value of EA, any buyout will certainly not be as big as Microsoft purchasing Activision, the most recent big deal which is currently going through various legal checks and balances before it is officially completed. There are other rumours, and Sony are said to have been circling Square Enix for some time – Square selling off a huge number of their franchises may have soured that deal, but might also have made them look more attractive to suitors as it cuts down on the influx of development teams that would need restructuring.

In related news it was announced today that I Am Bread publisher Bossa Studios has sold all their existing IP’s to TinyBuild, The deal “includes an upfront payment of $3 million,” said Bossa. The publishers will now concentrate on new projects, leaving the old IPs to TinyBuild.

I shall leave you with this witty Tweet.

If Amazon buy EA that means your downloadable content will be with you in 2-5 working days (possibly 7) despite selecting Prime.

— Kode Kaldwin ? (@kodekaldwin) August 26, 2022

Source: FTW