"EA is in the process of selling itself to an investor consortium led by Saudi Arabia's Public Investment Fund to the tune of $55 billion. Should the sale go through, it would likely result in cutbacks, possible layoffs, and EA selling "non-essential assets," according to DFC Intelligence. There could be upsides, too, DFC Intelligence president David Cole said in a new interview."
"He told Polygon that, if the deal happens and on a long-term basis, the EA sale could allow the company to "focus on more creative, risky ventures." This is because, Cole said, EA would no longer be a public company and would not be beholden to the mission of driving up the stock price and focusing more on safer bets."
""Short term, we expect them to focus more on core money generators and look to get top dollar for 'secondary' IP/products," he said. The EA sale to the PIF, Silver Lake, and Affinity Partners includes $20 billion in debt for EA, and many experts have theorized that EA will implement a cost-reduction plan to pay it off. That remains to be seen, and nothing is happening just yet anyway as the deal has not closed and is not expected to until 2026."
An investor consortium led by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners is offering $55 billion to take EA private in the largest leveraged buyout on record. The deal includes about $20 billion of debt that many expect will prompt cost-reduction measures, potential layoffs, and sales of non-essential assets. Short-term priorities are likely to center on core money-generating franchises and maximizing value for secondary intellectual property. Over the long term, private ownership could free EA from quarterly market pressures and enable investment in riskier, more creative projects. The deal is not closed and is not expected to complete until 2026. Andrew Wilson remains in place as CEO.
Read at GameSpot
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