It is not anticipated that Amazon will make a bid to purchase Electronic Arts, according to reports citing sources.

After USA Today reported that Amazon would reveal Friday that it plans to make a bid for the video game publisher, which is known for blockbuster games like FIFA, Madden, and Apex Legends, EA shares increased by more than 4% in early trading.

Faber brushed the report aside.

He stated, citing sources, “There’s nothing happening.”

A representative for Amazon stated that the company doesn’t respond to rumors or speculation. A request for comment regarding the report from USA Today was not immediately answered by EA representatives.

If Amazon pursued EA seriously, it might strengthen its position in the gaming market. Amazon already owns the well-known gaming-focused streaming service Twitch, has its own cloud gaming platform called Luna, and provides benefits for playing games as part of its Prime loyalty program.

In terms of M&A, Amazon has been quite active. Earlier this month, Amazon announced its intention to pay $1.7 billion to acquire iRobot, best known for its robotic vacuum Roomba. Just two weeks earlier, it had announced plans to pay $3.9 billion to acquire upscale primary-care chain One Medical.

This year, there has been some consolidation in the gaming industry.

Microsoft announced in January that it would pay $68.7 billion to acquire Activision Blizzard. Additionally, Take-Two Interactive announced in May that it would buy Zynga for $11 billion.

(Adapted from USNews.com)

Categories: Economy & Finance, Strategy, Uncategorized