Amazon Xbox Acquisition Would Take Years If It Happens, Source Says

Amazon Xbox Acquisition Would Take Years If It Happens, Source Says

A rumor began to spread this morning into a possible acquisition by Amazon of Microsoft’s Xbox One team. The source, however, revealed that talk in the industry is speculation, and that a Microsoft source said that there have been talks, but nothing has been nailed down. If something did work out, the transition would take years, according to the Microsoft source.

Amazon has been building a game and system development team, but this rumor has people shaking their heads.

The original rumor started from the user famousmortimer’s Twitter post, which was mentioned in a thread on NeoGAF. This started a pages long discussion, with many people discrediting the idea of the sale. “This is about as accurate as a crystal ball on a fair. I don’t see MS selling the Xbox brand/console/etc anytime soon. They’ve just invested billions of dollars into it,” said user Caayn on GAF. While this is true, Amazon can afford to spend billions buying it out. It all comes down to price and marketability, something that Amazon knows how to deal in.

This should definitely be taken as rumor, as the only source confirming it is the original source via hearsay. Microsoft is still dumping loads of money into development, exclusives, and promotions, but if it would take years, it would make sense to boost the value of the system before selling it.

“Am I being trolled? The original person to tell me might have been, I thought. I followed up with others. They said the same thing. Basically the scuttlebutt around D.I.C.E was that this made sense, one looking to dump, another looking to acquire. Then I talked to someone at ms that said there have been talks but it’s not even close to a done deal and if it does get done it will take years,” the source said on NeoGAF.

 

1 comments
ChrisMrkvicka
ChrisMrkvicka

I really doubt this would happen. Amazon's current assets are around $24 billion with their current liabilities being around $22 billion. In order for them to make a purchase like that, their liabilities would need to be at a lower percentage of their assets. Unless if they plan to split their stock a lot more, which would also dilute stock holder equity, they wouldn't be able to make that purchase.