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Amazon is not going to make a bid for Electronic Arts – sources

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Re: Amazon is not going to make a bid for Electronic Arts – sources

#81
post #59

It seems to me that Amazons long term strategy is to become a "Conglomerate of Brands", leveraging the profits from one business unit to buy out unrelated business. This sort of acquisition doesn't, as far as I can see, advance a particular core business unit (I'm aware Amazon have toyed with games publishing, but its not exactly a core business unit). I suppose it makes sense, investors want their investment to be s…

Amazon's strategy is to be a smarter GE, by expanding into new areas that feed power into the Amazon flywheel. EA would give them control over a core library of content and IP, that they could use to (a) ensure continued access into home consoles for their other products, (b) run as a game on demand service attached to Prime, or (c) make exclusive to launch their own console. And it seems like the sort of business Am…

Completely agree, there are synergies in these acquisitions, but it's also the breadth of them as well. Amazon has become a very broad business with vast distances between business units, but with a thread of related interested between them. Much like GE really, GE is routed in "old school" engendering, and thats the synergy that connects the relatively unrelated business it owns. For Amazon that synergy is the Internet, if it uses the internet then thats enough of a connection if the financials make sense.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#82

It seems to me that Amazons long term strategy is to become a "Conglomerate of Brands", leveraging the profits from one business unit to buy out unrelated business. This sort of acquisition doesn't, as far as I can see, advance a particular core business unit (I'm aware Amazon have toyed with games publishing, but its not exactly a core business unit). I suppose it makes sense, investors want their investment to be s…

They also want to become more involved with live sport broadcasts (NFL and Premier League for example). EA has some major sport licenses (NHL, NFL, FIFA, PGA, F1, UFC)

Re: Amazon is not going to make a bid for Electronic Arts – sources

#83

1, Amazon runs the platform that sells the games - Amazon 2, Amazon runs the platform that people use while playing the games - Twitch 3, Amazon runs the platform that hosts the servers to play the games - AWS 4, Amazon runs the platform that you play the game on - Luna 5, Amazon runs the platform that creates the games - EA how is this not anti-competition for anyone running a company that competes in only one of th…

Not that I agree with this argument, but I imagine Amazon might claim that Alphabet was essentially doing the same thing with Stadia, Youtube Game streaming, the Play store, and presumably cloud offerings (I don't know that one for sure though). Though I suspect the claim that "We at least compete with this other giant tech company hell bent on crushing competition" is probably not the most sympathetic argument in th…

>current antitrust atmosphere

What current antitrust atmosphere? What was the last trust busted?

Re: Amazon is not going to make a bid for Electronic Arts – sources

#84

1, Amazon runs the platform that sells the games - Amazon 2, Amazon runs the platform that people use while playing the games - Twitch 3, Amazon runs the platform that hosts the servers to play the games - AWS 4, Amazon runs the platform that you play the game on - Luna 5, Amazon runs the platform that creates the games - EA how is this not anti-competition for anyone running a company that competes in only one of th…

This is vertical integration. Horizontal integration is usually what is considered anti-competitive.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#85

It seems to me that Amazons long term strategy is to become a "Conglomerate of Brands", leveraging the profits from one business unit to buy out unrelated business. This sort of acquisition doesn't, as far as I can see, advance a particular core business unit (I'm aware Amazon have toyed with games publishing, but its not exactly a core business unit). I suppose it makes sense, investors want their investment to be s…

What movie was that where there was only one large company that did everything? Kind of scary that we are almost at that point now.

The Lego Movie

no, really

Re: Amazon is not going to make a bid for Electronic Arts – sources

#86

It seems to me that Amazons long term strategy is to become a "Conglomerate of Brands", leveraging the profits from one business unit to buy out unrelated business. This sort of acquisition doesn't, as far as I can see, advance a particular core business unit (I'm aware Amazon have toyed with games publishing, but its not exactly a core business unit). I suppose it makes sense, investors want their investment to be s…

What movie was that where there was only one large company that did everything? Kind of scary that we are almost at that point now.

[deleted]

Re: Amazon is not going to make a bid for Electronic Arts – sources

#87

1, Amazon runs the platform that sells the games - Amazon 2, Amazon runs the platform that people use while playing the games - Twitch 3, Amazon runs the platform that hosts the servers to play the games - AWS 4, Amazon runs the platform that you play the game on - Luna 5, Amazon runs the platform that creates the games - EA how is this not anti-competition for anyone running a company that competes in only one of th…

That's vertical integration and is mostly orthogonal to anti-competitive behavior. A million dollar startup could do those things too.

A million dollar startup could compete with these platforms all owned by Amazon?

Re: Amazon is not going to make a bid for Electronic Arts – sources

#89

1, Amazon runs the platform that sells the games - Amazon 2, Amazon runs the platform that people use while playing the games - Twitch 3, Amazon runs the platform that hosts the servers to play the games - AWS 4, Amazon runs the platform that you play the game on - Luna 5, Amazon runs the platform that creates the games - EA how is this not anti-competition for anyone running a company that competes in only one of th…

Yes you can stretch anything to fit a narrative. Amazon runs the platform that sells everything so they shouldn’t be allowed to buy anything.

Not a bad idea

Re: Amazon is not going to make a bid for Electronic Arts – sources

#90

1, Amazon runs the platform that sells the games - Amazon 2, Amazon runs the platform that people use while playing the games - Twitch 3, Amazon runs the platform that hosts the servers to play the games - AWS 4, Amazon runs the platform that you play the game on - Luna 5, Amazon runs the platform that creates the games - EA how is this not anti-competition for anyone running a company that competes in only one of th…

Yes you can stretch anything to fit a narrative. Amazon runs the platform that sells everything so they shouldn’t be allowed to buy anything.

It's not stretching the narrative at all, this is exactly how the executives think at Amazon. Everything must be connected and used to showcase the other parts of the business.
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