Game company EA is on the rise due to Amazon takeover rumors
The major gaming company Electronic Arts (EA) may be acquired by Amazon, rumor has it. As a result, EA’s share price has risen by 8 percent.
Amazon would now have made the decision, USA Today reports. EA and Amazon are not commenting. CNBC states just hours after the rumor that Amazon would not make an offer for EA. After that, EA’s stock fell again.
EA is known for games like FIFA, various Star Wars titles, Mass Effect, Dragon Age, Dead Space, and many more. The company has been around since 1982 and has nearly 13,000 employees.
EA has a market cap of about $35 billion. Such takeovers are often concluded at an amount that is above the market value.
Microsoft Acquisition of Activision Blizzard
The largest acquisition in the game field is probably not going to be, that probably remains the acquisition of publisher Activision Blizzard by Microsoft at the beginning of this year. Microsoft pays 60 billion euros for Activision Blizzard, but the acquisition still has to be approved by regulators.
Shopping rage in game land
Amazon has been active in games for some time now. The web giant owns the streaming platform Twitch, the most popular way to live stream games to other viewers. The company also already has its own game studio, Amazon Games, with the game New World as its most famous title. Furthermore, Amazon has its own game streaming service: Luna. Games are streamed from Amazon servers to players, who then do not need a powerful (game) computer to play.
There have been rumors for some time that EA would probably be bought by one of the major game or tech companies. The takeovers have followed each other in rapid succession in recent years. The buying frenzy underlines how lucrative games are now. It is becoming increasingly important for companies to distinguish themselves from the competition with exclusive titles.