Amazon.com, Inc. (NASDAQ:AMZN) Bids to Acquires Electronic Arts Inc. (NASDAQ:EA) is Under High Speculation

Amazon.com, Inc. (NASDAQ:AMZN) is flying on the bears territory as shares dropped around 2% in pre-opening session as the firm said on Friday that it is not planning to offer for Electronic Arts Inc, according sources quoted by CNBC. This claim was appeared against an earlier report that Amazon would make an offer for the videogame publisher.

On the other hand, Electronic Arts Inc. (NASDAQ:EA) surged over 3.5% in last trading session following the news from USA Today on Amazon’s acquisition offer for the “FIFA” and “Apex Legends” owner. But on Monday in pre-trading session shares dropped around 1%. The company has a market valuation of around $37 billion. Amazon (AMZN) and Electronic Arts Inc. (EA) refused to comment on rumors.

With around $37 billion in cash on hand, Amazon has begun looking for acquisitions to expand its company outside cloud computing and e-commerce under the leadership of new CEO Andy Jassy. Just weeks after deciding to purchase primary healthcare provider One Medical for $3.5 billion, the business made an offer earlier this month to purchase Roomba manufacturer iRobot Corp for $1.7 billion.

The momentum and visibility of several of GM’s major strategic projects, according to Paul Jacobson, CEO and CFO, had an impact on the company’s decision to be more aggressive with its capital return program and its investment.

Amazon, which owns videogame live-streaming platform Twitch, has also purchased MGM studios, the maker of “Rocky” and “James Bond”, movies for $8.5 billion. EA’s strong licenses, intellectual property rights and the potential to build new games in the metaverse make it an attractive option for tech giants looking to grab attention from a younger audience, analysts said.

Twitch, videogame live-streaming platform owned by Amazon has also purchased MGM studios, the maker of “Rocky” and “James Bond”, movies for $8.5 billion. EA’s strong licenses, intellectual property rights and the potential to build new games in the metaverse make it an attractive option for tech giants looking to grab attention from a younger audience, analysts said.

She claimed that Amazon was typical of many tech juggernauts that thought about upending the healthcare industry. “In general, they vastly underestimate how hard and complex it is to disrupt the $4 trillion health care business. As a result, they are still a negligible presence in health care, especially when it comes to providing genuine care, which is where Amazon Care sits.

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