EA Pares Gains After Retraction of Report on Amazon Prepping Bid
- The original report was retracted by USA Today for sourcing
- EA has long been suspected of being a takeover target
Attendees gather in front of an Electronic Arts Inc. logo during an EA Play event in Los Angeles.
Photographer: Patrick T. Fallon/BloombergElectronic Arts Inc. found itself the subject of takeover speculation on Friday, sending its shares up as much as 16% in early trading before the report was walked back and other news outlets refuted the possibility of an imminent deal.
A report published in USA Today by GLHF -- a gaming and esports site and content partner of USA Today’s For the Win column -- said Amazon.com Inc. could announce as soon as Friday an offer to acquire EA, the publisher of hit games Apex Legends, FIFA and Madden titles. The news sent EA’s shares surging early Friday morning before David Faber cast doubt on the report on CNBC following its publication. Later, USA Today added a note at the top of the original story saying that it “violated our editorial standards regarding the use of unnamed and unvetted sources,” and the language about a pending announcement had been removed.