"Near the end of September, EA disclosed a $55 billion deal to take the third-party video game publisher private under a new ownership group including Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners, and the private equity firm Silver Lake. It's also the largest leveraged buyout (LBO) of all time, and it will require EA to settle $20 billion in debt."
"According to a report by Polygon, multiple analysts believe that BioWare is a prime candidate to be sold because of the studio's struggles over the last decade. BioWare's Dragon Age: The Veilguard fell far below EA's expectations, and the studio was hit by numerous layoffs in the aftermath. A much smaller team at the studio is currently working on the next Mass Effect title, which may entice potential buyers."
"[Leveraged buyouts] are historically followed by cutbacks and the sell of non-essential assets in the short-term," Cole told Polygon. "Long term, this can allow a company like EA to focus on more creative risky ventures, as they are not beholden to public shareholders. But short term, we expect them to focus more on core money generators and"
EA agreed to a $55 billion leveraged buyout that creates a new ownership group including Saudi Arabia's Public Investment Fund, Affinity Partners, and Silver Lake and will require the company to settle roughly $20 billion in debt. Several analysts expect EA to sell or shutter studios to meet debt obligations. BioWare is widely viewed as a likely sale candidate after Dragon Age: The Veilguard underperformed and the studio faced layoffs, though a smaller team is developing the next Mass Effect. Battlefield 6 performance could determine DICE's fate, while Maxis and The Sims 4 are currently seen as safer assets. Analysts predict short-term cutbacks and asset sales, with potential long-term focus shifts under private ownership.
Read at GameSpot
Unable to calculate read time
Collection
[
|
...
]