Amazon reportedly acquiring EA with official announcement soon, but contradictory reports emerge

EA and Amazon's bond with each other could get stronger very soon if the rumors circling on social media are to be believed. There have been strong rumors about the former looking for a potential buyout option. According to GLHF sources, a change of hands could happen later in the day. However, contradictory reports have stated that Amazon isn't expected to make a bid, which has left many in limbo.

2022 has been a year of acquisitions and takeovers as far as the gaming industry is concerned. It all started with Microsoft's potential acquisition of Activision Blizzard, which is still in the process. PlayStation followed it up with a quickfire acquisition of Bungie, and who can forget the Embracer Group's purchase of multiple video game companies and IPs?

There have been long rumors about Electronic Arts finding a solution for some time now. They have been seeking extra force to lift them along with Ubisoft. If the rumors are to be believed, Amazon could be that layer of support the company has been looking for. While it's not officially confirmed yet, the acquisition won't be surprising, considering who is involved.

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Amazon could hand EA a much-needed lifeline despite contradictory rumors

Rumors regarding EA's prospective acquisition have been doing the rounds for some time. Disney was considered by many to be a healthy option, but it didn't materialize. Given Amazon's interest and pursuits in gaming, they were also thought to be in the loop.

If GLHF sources are to be believed, an official announcement will be made later today to formally declare the acquisition. Not much is known aside from this, and unless there's official confirmation, more details are unlikely to be out.

Interestingly, CNBC sources have reported that there won't be any bids coming.

This could be done to prevent an increase in the share price, which might put the bidders in jeopardy. There has already been a price increase in EA's shares following the emergence of the rumors, and the company would want the acquisition to happen.

It will undoubtedly be interesting to see whether or not the acquisition ultimately happens. Even if the deal fails, it could be beneficial to both parties who are involved.

EA hasn't seen the best of times in recent years, although it's financially stable. Several franchises have been hit with staunch criticism from fans, which has seen the company seek alternative strategies for the future.

A potential acquisition would indeed be advantageous for both. Amazon will directly own the rights of some of the great franchisees, which can be aligned with their vision for Prime Video. Recently, several movies and TV shows based on video games have come to the fore.

For the other party, it will be a handy injection of cash and an influx of solid networks. Given Jeff Bezos' company's leverage in the global market, it could benefit EA in multiple ways.