CNBC reported on Friday that Amazon.com Inc (AMZN.O) is not expected to bid for Electronic Arts Inc (EA.O), citing sources, contradicting an earlier report that the online retailer would make an offer for the videogame publisher today.
EA shares were up 15% in premarket trading following a report from USA Today about Amazon’s takeover bid for the owner of “FIFA” and “Apex Legends.” The stock later trimmed its gains and was last up about 6%.
Amazon did not immediately respond to Reuters’ requests for comment, while EA stated that it does not comment on rumors or M&A speculation.
Amazon, which has a cash pile of approximately $37 billion, has begun the acquisition trail as it seeks to diversify its business beyond e-commerce and cloud under new CEO Andy Jassy.
Its bids include $1.7 billion for iRobot Corp, the maker of the Roomba, and $3.5 billion for primary care provider One Medical.
The company, which owns the videogame live-streaming platform Twitch, has also paid $8 billion for MGM Studios, the producer of “Rocky” and “James Bond” films.
As of the last close, EA had a market value of $35.5 billion, having lost only about 3% of its value this year, far better than some of its peers.
Meanwhile, the video game industry is consolidating, with new mergers and acquisitions blurring the line between personal computer and mobile gaming companies.
Microsoft is paying $68.7 billion for Activision Blizzard Inc, the maker of “Call of Duty.”
The transactions take place against the backdrop of the struggling global gaming industry as the surge in demand seen during the pandemic subsides.
Earlier this month, EA forecasted lower-than-expected quarterly adjusted sales, with Chief Financial Officer Chris Suh stating that the company was not “completely immune” to the recession.
