Electronic Arts (EA) stock jumps on conflicting reports of Amazon (AMZN) acquisition
There was word that Amazon had made an offer to EA and the deal could be announced today, but analysts claim no deal is in place.
It’s been an odd back and forth morning for Electronic Arts. What began with a report that EA might be acquired by Amazon, who has reportedly been one of several suitors interested in a deal, has been allegedly refuted by sources close to the situation. It doesn’t seem there’s going to be an Amazon/EA deal at this time, but it didn’t stop EA’s stock from taking a rollercoaster ride on the rumors.
It all began with a story published by USA Today on August 26, 2022. According to USA Today’s original story (which has since been altered and updated), the group originally learned from a Swedish podcast known as GLHF that Amazon had put up a deal to acquire Electronic Arts that was said to have been accepted by the latter. Supposedly, announcement of the deal and acquisition was supposed to be announced today. However, soon after, CNBC claimed that sources close to EA and Amazon shared that no such deal was happening at this time. It’s not to say it wouldn’t happen at all, but it seems we’re not getting any kind of acquisition announcement today.
Whether the deal was real or not, the effect on Electronic Arts’ stock was very real. The company’s stock took quite a jump on word of an acquisition by Amazon. Where the market closed with EA at a share price of $127.61 USD per share on Thursday, August 25, 2022, it jumped up to hit a high of around $135.20 per share on August 26. The price hasn’t stayed at that high, but it hasn’t fallen anywhere near the $127.61 share price it was at yesterday.
There has been word of Electronic Arts coming close to being acquired several times throughout 2022. Back in May 2022, a deal from NBC Universal reportedly fell through after coming down to the wire. Other groups allegedly interested in acquiring EA have included Amazon, Disney, and Apple.
Nonetheless, it appears that no deal is happening yet and the EA/Amazon acquisitions may currently be smoke and mirrors, even if EA shareholders are enjoying a positive day. Stay tuned as we continue to follow this story for further updates.
TJ Denzer posted a new article, Electronic Arts (EA) stock jumps on conflicting reports of Amazon (AMZN) acquisition