Before anyone thinks this could be good news for EA…
The offer comes from a group of investors that includes Silver Lake, one of the world’s largest private equity firms, and Saudi Arabia’s controversial Public Investment Fund.
WSJ states that it would “likely be the largest leveraged buyout of all time.”
A leveraged buyout from a PE firm means they’ve decided EA needs to die and they’re going to pick the carcass clean.
On the other hand, the Public Investment Fund is focused on long-term profitability to reduce Saudi Arabia’s economic dependence on fossil fuels, so there’s a chance EA might improve.
Though their investment isn’t a great thing for other reasons, of course.
I don’t know Silver Lake, but in the thread Schreirer made when breaking this someone suggested they are not specifically in that business. Which makes sense, that’d be an absolute waste of 50 billion, they’re definitely not getting that money back by breaking EA up. They have very, very little marketable IP or assets, considering their major moneymakers are all licensed games, at least outside the Battlefield franchise.
Silver Lake owned GoDaddy for a while. They owned Dell for a while. They seem to have a history of buying companies in big deals, taking them private for a while, then having them go public again later.
I have no idea what that process looks like, but this a) seems to fit their pattern, and b) seems to match other big tech companies that they’ve bought and continued to be a going concern indefinitely.
I don’t know that “good news” is how I’d describe it, but it doesn’t mean EA is done, at least up front.
You are not logged in. However you can subscribe from another Fediverse account, for example Lemmy or Mastodon. To do this, paste the following into the search field of your instance: [email protected]
No game suggestions, friend requests, surveys, or begging.
No Let’s Plays, streams, highlight reels/montages, random videos or shorts.
No off-topic posts/comments, within reason.
Use the original source, no clickbait titles, no duplicates.
(Submissions should be from the original source if possible, unless from paywalled or non-english sources.
If the title is clickbait or lacks context you may lightly edit the title.)
Annual operating income this year $1.5 billion.
Before anyone thinks this could be good news for EA…
A leveraged buyout from a PE firm means they’ve decided EA needs to die and they’re going to pick the carcass clean.
I came here to say this. EA has entered the death spiral.
EA dying is good news. At least this way popular IPs can live on under new management or be sold off.
not before the studios are purged, unfortunately
NFL football games can heal again
What does this mean for the games they’re working on? I mean, I only care about the Jedi: Survivor sequel, but I’d still really like to have it.
On the other hand, the Public Investment Fund is focused on long-term profitability to reduce Saudi Arabia’s economic dependence on fossil fuels, so there’s a chance EA might improve.
Though their investment isn’t a great thing for other reasons, of course.
I don’t know Silver Lake, but in the thread Schreirer made when breaking this someone suggested they are not specifically in that business. Which makes sense, that’d be an absolute waste of 50 billion, they’re definitely not getting that money back by breaking EA up. They have very, very little marketable IP or assets, considering their major moneymakers are all licensed games, at least outside the Battlefield franchise.
Silver Lake owned GoDaddy for a while. They owned Dell for a while. They seem to have a history of buying companies in big deals, taking them private for a while, then having them go public again later.
I have no idea what that process looks like, but this a) seems to fit their pattern, and b) seems to match other big tech companies that they’ve bought and continued to be a going concern indefinitely.
I don’t know that “good news” is how I’d describe it, but it doesn’t mean EA is done, at least up front.
Thank you for input that isn’t just negative rhetoric.
Dang it, I misread the title and thought there was news about Blockbuster Video :(
No long public facing for illegal moves to be exposed.