Electronic Arts (EA.US), a well-known video game company, is rallying around 15% in US pre-market trading today. Jump was triggered by media reports saying that Amazon (AMZN.US) is expected to announce a formal offer to acquire EA today. Rumors about potential EA takeover have been making rounds for weeks but it was uncertain who the acquirer might be. Apple, Disney and Amazon were named among potential buyers and it looks like the e-commerce giant will ultimately be the one making a move. EA shareholders should therefore keep on guard during a session today as formal announcements will likely include proposed financial terms and we are yet to see whether those will be promising or disappointing. If the deals go through, it would be another major M&A in the gaming sector, following the acquisition of Activision Blizzard by Microsoft earlier this year.
Shares of Electronic Arts (EA.US) are trading around 15% in US premarket trade at press time. Jump is triggered by rumors saying that Amazon may announce today a formal offer to acquire a video game company. Such a big jump would put the stock back in the area of 2021 highs. Source: xStation5
