Amazon has no plans to acquire EA, sources said

Source: ea.com

E-commerce giant Amazon has no plans to acquire Electronic Arts (EA), sources told CNBC

EA’s shares rose 15% in premarket trading after USA Today reported last Friday that Amazon was planning to make an offer to buy the American video game company. 

However, sources told CNBC that the rumour isn’t true and Amazon doesn’t have such a plan at the moment. While an EA spokesperson declined to respond, an Amazon spokesperson said they don’t make comments on rumours or speculation, CNBC reported. 

Amazon already has a large footprint in the gaming industry. Earlier this month, the company announced that the number of Prime Gaming users grew 120% in the last two years. 

The tech giant acquired Twitch back in 2014 for $970 million. The streaming platform, which is quite popular among gamers, surpassed $1 billion in consumer spending earlier this year. The company also announced its own cloud gaming platform ‘Luna’ in September 2020, which is currency available in the United States only. 

Amazon recently announced that it agreed to acquire One Medical for $3.5 billion and robot vacuum cleaner maker iRobot for $1.7 billion. 

In addition, the company also acquired American media company MGM Studios for $8.5 billion earlier this year and podcast network Wondery in late 2020 for an undisclosed amount. 

Written by Maya Robertson

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