According to reports Amazon, an internet-based enterprise which has its tentacles spread out in multiple domains is set to acquire Electronic Sports (EA). Although Electronic Arts and Amazon are yet to make an official confirmation on the deal, it is expected that the official confirmation on the deal would be made today, according to an esports content company GLHF.
If rumours are to be believed companies including Disney and Apple are also interested in the acquisition. Electronic art SEO had said in August that the company would be available for acquisition starting the month of August. The current value of Electronic Arts is $35 billion.
The impact of the acquisition report was also felt on the pre-trading market which saw a spike of 15% before coming down to 6% for Electronic Sports.
Founded by an Apple employee William. M. Hawkins, in 1982 California, the Electronic Arts is a developer and manufacturer for video games. Some of the main products developed under the enterprise banner include FIFA, Madden NFL, Apex Legends and The Sims. EA sports which were initially known as Amazin’ Software is known for its unique strategy of highlighting developer name.
Amazon’s Commitment to Gaming
Amazon’s foray into gaming began in 2012. Amazon currently has three game development studios and video projects including Fallout and God of War TV shows. Reportedly Amazon’s new CEO Andy Jassey expressed his commitment to AGS (Amazon Gaming Studios) a day before his appointment.
The gaming industry saw its expansion during the Covid lockdowns. It is expected to maintain its rapid growth and is expected to be a $321 economy by 2026 according to PwC reports. Earlier this year Microsoft announced the acquisition of Activision Blizzard for $68.7 billion. Activision Blizzard is a developer of games like Call of Duty, Crash Bandicoot etc.
Other Side of the Story
Having said that a section of media reports led b CNBC have negated the development. According to a CNBC report, Amazon will not bid for the EA acquisition. Both Amazon and EA Sports have declined to comment on the development. The CNBC report relies on the inputs of the anchor CA, who clarified that sources aware of the development have said that there is no such development in this regard.
He said “I have talked to some people who could actually know if there was something going on, and they say there’s nothing going on,” Faber said. “These are people who would be involved.”