Sources told CNBC’s David Faber on Friday that Amazon is unlikely to make an offer to buy Electronic Arts. EA shares rose 3.5% on Friday after USA Today reported that Amazon would announce a bid for the video game publisher known for hit titles such as FIFA, Madden, and Apex Legends on Friday. On CNBC’s Squawk Box, Faber dismissed the report. “Nothing is going on,” he said, citing sources.
According to an Amazon spokesperson, the company does not comment on rumors or speculation. A representative for EA declined to comment.
If Amazon pursues EA aggressively, it could help strengthen the retail behemoth’s gaming presence. Amazon already owns Twitch, a popular gaming streaming service, has its own cloud gaming service called Luna, and offers gaming perks as part of its Prime loyalty program.
Amazon has been active in mergers and acquisitions. Amazon announced earlier this month that it intends to pay $1.7 billion for iRobot, best known for its robotic vacuum Roomba. The announcement came just two weeks after it announced a $3.9 billion acquisition of boutique primary-care chain One Medical.
This year has seen some consolidation in the gaming industry. Microsoft announced in January that it would acquire Activision Blizzard for $68.7 billion. In addition, Take-Two Interactive announced in May that it would acquire Zynga for $11 billion.