Rumors Of Amazon Buyout That Have Since Been Disputed Still Sent Electronic Arts Soaring
In a case of much ado about nothing, Amazon.com, Inc. (Nasdaq: AMZN) was rumored to announce soon its official bid to acquire Electronic Arts (Nasdaq: EA), first reported by Swedish e-sports outlet Good Luck Have Fun (GLHF).
But apparently, the rumor was just that–a rumor.
“I have talked to some people who would actually know if there was something going on, and they say ‘there’s nothing going on’,” CNBC’s David Faber said. “No, this is not going to happen today–is from what I’m hearing. Unless, people who have been involved previously have no idea.”
Faber was referring to the sources that were involved in the potential deal between Comcast (CNBC’s parent company) and Electronic Arts to spinoff NBCUniversal and the gaming firm into a business combination.
The rumors became the strongest to circulate among those that are being floated to have an interest on buying Electronic Arts after the Swedish content producer broke the story on Friday on sports website For The Win. The latter recanted the piece later on and said that GLHF “violated [the website’s] editorial standards regarding the use of unnamed and unvetted sources” through the story.
While the rumors have since been refuted, both of the companies’ stocks have reacted to the disputed news. Electronic Arts jumped by as much as 6% while Amazon has fell by almost 4% since the recantation.
As of late, the gaming platform is rumored to be shopping for a potential buyer, with the contenders list said to include Apple, Disney, and Amazon.
Information for this briefing was found via CNBC, For The Win, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
