CNBC Amazon Not Expected To Offer Electronic Arts

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August 26 (Reuters) Aug 26 (Reuters) Amazon.com Inc is not expected to bid for Electronic Arts Inc, CNBC reported on Friday according to sources, disproving an earlier report that the internet giant would make an offer today for the videogame publisher.



EA shares rose 15 percent in premarket trading following the USA Today report on Amazon's takeover offer. The stock rose 4percent in premarket trading, which gives the company an estimated market value of more than $37 billion.



Amazon and EA stated that they don't comment on rumors and M&A speculation.



Amazon has an estimated cash balance of $37 billion, is on the acquisition trail to diversify its business beyond cloud and ecommerce under its new Chief Executive Andy Jassy.



The company earlier this month offered to buy Roomba-maker iRobot Corp for $1.7 billion, just weeks after agreeing to buy the primary care provider One Medical for $3.5 billion. I'm Only Good At One Thing



Amazon is the owner of streaming platform for video games, Twitch also acquired MGM studios, the producer of "Rocky" and "James Bond" films, for $8.5 billion.



Analysts have said that EA's solid licenses and intellectual property rights make it an attractive option for tech giants looking at younger audiences.



Bets on the metaverse had also powered Microsoft Corp's $68.7 billion deal for EA rival and "Call of Duty" maker Activision Blizzard Inc in January https://www.reuters.com/article/activision-m-a-microsoft-idCAKBN2JS174.



The new deals are also blurring the distinction between personal computer and mobile gaming companies. This is happening against the background of a struggling global gaming industry as the pandemic-driven surge in demand ebbs.



The global gaming market is expected to grow just by 2% in 2022, down from a year ago, data from research firm Newzoo revealed, a far from the 23% growth that was recorded in 2020.



EA has forecast lackluster adjusted sales, saying it was not "completely immune" to recession.



Its shares were down around 3% to Thursday's close, compared with an almost 30% drop for Take-Two.

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