Apple Backs Out of Talks to Purchase Game Studio Electronic Arts, Amazon Reportedly Set to Make Offer Instead [Updated]
Apple has backed out of a potential purchase of the game studio Electronic Arts (EA) following talks that have been ongoing since as early as May of this year, with Amazon instead poised to make an offer, according to a report from USA Today vertical ForTheWin.
Over the last couple of months, EA has been speaking to several companies with potential interest in the acquisition, including Apple, Amazon, and Disney. Apple has had a renewed interest in the gaming market ever since the launch of Apple Arcade, the company's subscription-based gaming service that offers exclusive games with no in-app purchases and ads.
A purchase of EA by Apple would give the Cupertino tech-giant access to hit gaming franchises that include "The Sims," "Battlefield," "Apex Legends," "SimCity," "DragonAge," "FIFA," and more.
Apple purchasing EA, which has a market value of $34 billion, would be the largest acquisition by Apple in its history. Apple's largest purchase to date is Beats, which it bought for $3 billion in 2014. During the company's last earnings call in July, CEO Tim Cook said Apple "never buys just to buy," but added that he wouldn't "rule anything out" and that Apple is "constantly surveilling the market."
Update: According to CNBC sources, the rumor that Amazon is set to purchase Electronic Arts (EA) is incorrect.
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