EA will be a different company under private ownership
5 hours ago
- #Electronic Arts
- #Gaming Industry
- #Leveraged Buyout
- EA plans to sell itself to a consortium of private equity firms in a $55 billion deal, the largest leveraged buyout in history.
- The privately owned EA will differ significantly from the public company, potentially affecting game production.
- The new EA will have roughly $20 billion in debt, requiring $1 billion annually in service payments.
- To manage debt, EA may implement layoffs, studio closures, and sell off IPs.
- The company might focus more on profitable areas like live services, annual sports franchises, and microtransactions.
- Studios not involved in EA's most profitable franchises (e.g., BioWare, Codemasters, Respawn) could face layoffs or sell-offs.