Electronic Arts (NASDAQ:EA)
Early on Friday, unverified claims that Amazon was getting ready to announce an acquisition of the dominant video game company sent the price of Electronic Arts (NASDAQ:EA) stock on a wild trip, this reduced early gains Friday and is presently up 4%.
Shares of the business that makes “Battlefield,” “Madden NFL,” and “The Sims” increased more than 14% in pre-market trading when a merger was allegedly imminent, according to an obscure Swedish news outlet called “Good Luck Have Fun.” Larger news agencies, like USA Today, picked up the story.
Debunked story
According to sources cited by CNBC’s David Faber, Amazon is not anticipated to make an offer. A report from USA Today’s ForTheWin column stated that earlier sources from the Swedish video game industry website GLHF indicated that AMZN was anticipated to launch an offer for Electronic Arts (EA) on Friday.
An editors’ comment was added by USA Today to their original Friday article at the top of the piece, which had spurred rumors of a possible partnership between EA and Amazon (NASDAQ:AMZN). Following Faber’s announcement, EA shares decreased, but at 8:30 a.m., they were still up 5.5% at $127.61.
“We don’t comment on rumors and conjecture linked to M&A,” said Charlie Fortescue, an EA spokeswoman, to The Post. We don’t comment on speculative claims, according to Kanak Jha, an Amazon representative. Federal antitrust regulators would almost surely pay notice if Amazon acquired a significant video game developer.
Earnings first fiscal quarter ended June 30
As continuous operations for popular EA Sports releases like FIFA helped it get through a quarter with fewer releases, Electronic Arts today revealed earnings for its first fiscal quarter, which concluded on June 30.
Net bookings for the quarter were $1.299 billion, exceeding analyst average forecasts of $1.26 billion while declining 2.7% from $1.336 billion a year earlier. Given the significant impact, the pandemic had on games the previous year, when more people stayed indoors and played more games, the minor dip from the previous year isn’t surprising.
Featured Image: Megapixl @Rafaelhenriquepress
Author Jowi Kwasu 
