Amazon has made a bid to buy FIFA game publisher EA, report claims
Amazon has reportedly made a bid to buy Electronic Arts (EA), the US video game company behind the hugely successful FIFA series.
According to Stockholm-based gaming content agency GLHF, Amazon will confirm its bid to take over the gaming firm on Friday.
Rumours have circulated since the spring that EA had been looking to be acquired by a large company, including Disney, Apple or Amazon.
The rumoured takeover was first reported by USA Today, which said ‘Amazon has finally made an offer’, citing GLHF as its source.
Such a purchase could broaden Amazon’s push into sports, following its purchase of live streaming rights of NFL and the Premier League on its Prime platform.
Amazon also already owns video game live-streaming platform Twitch, which hosts live sporting tournaments.
However, the rumour of a bid has been quashed by CNBC, which suggested there has been no such offer from Amazon.
Amazon has reportedly made a bid to buy Electronic Arts, the US video game company behind the hugely successful FIFA series (file photo)
Speaking on air on Friday, CNBC analyst and journalist David Faber said: ‘I’ve talked to some people who would actually know if there was something going on, and they say there’s nothing going on.
‘EA definitely has been out there a bit in the past at least considering what it might do. You could imagine Amazon might have some interest. [But] this is not going to happen today.’
MailOnline contacted EA, GLHF and Amazon – which already owns video game live-streaming platform Twitch – for comment.
EA replied: ‘We don’t comment on rumors and speculation relating to M&A [mergers and acquisitions].’
EA shares had jumped 15 per cent in premarket trading after the report from USA Today on Amazon’s supposed takeover bid, although they later fell.
EA is probably best known for its FIFA football series, which has sold more than 325 million units since the first FIFA game, ‘FIFA International Soccer’, was released in 1993.
EA’s FIFA games have been released annually for nearly 30 years thanks to an official partnership with world soccer governing body FIFA.
However, in May, it was announced that the long-standing partnership is set to come to an end next year, meaning this year’s installment of FIFA will be the last.
EA will keep releasing its own football series, titled EA Sports FC, while FIFA reportedly intends to enter a partnership with a new developer.
The decision came after months of tense negotiations as FIFA officials reportedly demanded $1 billion for its licensing rights from EA.
The final FIFA game, FIFA 23, will be released on September 30, and will be the first to introduce women’s club football to the gaming options.
EA will keep releasing its own football series, titled EA Sports FC, while FIFA reportedly intends to enter a partnership with a new developer. Pictured, a promo shot from FIFA 23
FIFA 23, to be released on September 30, will be the first to introduce women’s club football to the gaming options. Pictured, a FIFA 23 promo shot featuring Chelsea striker Sam Kerr
EA, headquartered in Redwood City, California, was founded in May 1982 by Apple employee Trip Hawkins.
It’s since created multiple video game franchises that have sold many millions of units, including The Sims, Medal of Honor and Apex Legends, as well as FIFA.
But the global gaming industry is said to be struggling as the surge in demand seen at the height of the pandemic cools down.
Earlier this month, EA’s chief financial officer Chris Suh said the company was not ‘completely immune’ to recession after revealing its quarterly results.
‘There are parts of the business that I think are doing better and parts of the business that are maybe doing a little worse than we would have anticipated even a few months ago,’ Suh said.
Amazon, meanwhile, has hit the acquisition trail as it looks to diversify its business beyond online shopping and cloud storage under its new CEO Andy Jassy.
The company’s recent bids include a $1.7 billion offer for Roomba-maker iRobot Corp and $3.5 billion for primary care provider One Medical.
Amazon has also purchased MGM studios, the maker of ‘Rocky’ and ‘James Bond’, movies for $8 billion.
Rival tech company Microsoft also purchased EA rival and ‘Call of Duty’ maker Activision Blizzard Inc for $68.7 billion earlier this year.