Microsoft considering to buy Electronic Arts?

Could Microsoft be gearing up for a major acquisition in the video game industry? Polygon says rumors are heating up and heard that a major announcement is to be expected shortly. One reliable source close to Microsoft says the firm is considering gobbling up Electronic Arts, while other whispers talk about Valve and PUBG Corp.

Another reason for optimism about an acquisition comes from internal shifts within Microsoft. Spencer was promoted in the fall to executive vice president, gaming, where he has a much bigger say over how video games fit into the company’s overall strategy.

“He came on at a time when the Xbox One was in a bad position,” said Cole. “I think he’s made the best of a bad situation. The overall strong position of the company is positive because it gives the room to invest in gaming.”

Over the years, Microsoft has made some bizarre, overpriced acquisitions. It wasted close to $8 billion in a failed attempt to get into the smartphone market via its Nokia hardware acquisition, and it blew a massive $8.5 billion on Skype. While it would be surprising to see Microsoft pick up a major game publisher, the company definitely has the cash reserves ($130 billion) to do it, and it could end up being a better strategic fit than earlier, multi-billion dollar acquisitions.