This is surprising, though I don't know what it means for us in the long run
EA confirms it will go private in $55 billion acquisition
EA confirms it will go private in $55 billion acquisition
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EA confirms it will go private
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Horrific
The micro transaction and VC currency angles are gonna get worse and worse and worse
The micro transaction and VC currency angles are gonna get worse and worse and worse
So they just get rid of their stockholders, but are there still masters? I assume so. I agree that it remains to be seen what this means. The game industry seems to be in disarray with a few healthy players, and many not so healthy with third party corporate masters pulling the strings. That's just a vague, general observation...
I don't know ... I think a ton of people would be happy if EA, in its current form in 2025, went away.
Their sports games are just so "meh" and every year of nearly all of them is just basically always a paid roster update.
Here's some more details, and its more disconcerting
Video gamer Electronic Arts to be bought in largest-ever private equity buyout valued at $55 billion
So shareholders will get 210 per share, but it seems this deal is going to be a leveraged buyout. Few companies ever excel, or do well when they are saddled with billions of dollars of debt. They didn't buy them because EA had good long term prospects to make profits, they're going to gut the company and leave the husk floundering in debt, all in the name of making money
Video gamer Electronic Arts to be bought in largest-ever private equity buyout valued at $55 billion
So shareholders will get 210 per share, but it seems this deal is going to be a leveraged buyout. Few companies ever excel, or do well when they are saddled with billions of dollars of debt. They didn't buy them because EA had good long term prospects to make profits, they're going to gut the company and leave the husk floundering in debt, all in the name of making money
Its a shame they got popcap, they made some great little games independent, and then... PvZ 2
The ars article confirms that EA now has 20 billion dollars of debt
So if this article is accurate, the company has to pay 1 billion dollars a year to JP Morgan. So just to put that in perspective, in FY25 (march 31st) EA had a net profit of 1.121 billion. Basically now with this debt nearly all of their profit will be wiped out.
So if this article is accurate, the company has to pay 1 billion dollars a year to JP Morgan. So just to put that in perspective, in FY25 (march 31st) EA had a net profit of 1.121 billion. Basically now with this debt nearly all of their profit will be wiped out.
Is it? That's basically their annual net income.
Soon you'll have to attach a real credit card to your Madden game so you can pay your digital players with real money*.
* actually send money to EA all day long
* actually send money to EA all day long
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My guess is that the transaction could lead to an EA renaissance because it is not the usual type of private equity buyout.
The lead investor is a sovereign wealth fund, owned by a country whose de facto leader wants to reduce its dependence on oil exports, use entertainment assets—such as sports and video gaming—to better its international image, and bring in jobs that are attractive to the country's younger population. In addition, the EA purchase is an addition to an existing portfolio of video game companies.
Given the objectives of the country, which are all long-term in nature as opposed to the typical private equity time frame of five years or less, and the large amounts of money available to the fund, I think there is a chance EA will not be stripped of everything of value and run in a way that is only meant to extract cash. This isn't a certainty, of course, but let's face it...EA hasn't been operating with its customers' interests in mind for decades now. Barely finished games, excessive micro-transactions, awful writing, the list goes on and on and on. Things can't get much worse from a gamer's perspective.
The lead investor is a sovereign wealth fund, owned by a country whose de facto leader wants to reduce its dependence on oil exports, use entertainment assets—such as sports and video gaming—to better its international image, and bring in jobs that are attractive to the country's younger population. In addition, the EA purchase is an addition to an existing portfolio of video game companies.
Given the objectives of the country, which are all long-term in nature as opposed to the typical private equity time frame of five years or less, and the large amounts of money available to the fund, I think there is a chance EA will not be stripped of everything of value and run in a way that is only meant to extract cash. This isn't a certainty, of course, but let's face it...EA hasn't been operating with its customers' interests in mind for decades now. Barely finished games, excessive micro-transactions, awful writing, the list goes on and on and on. Things can't get much worse from a gamer's perspective.
Am indifferent to the likes of EA, they have abused their position for years on end. If EA improves👍Should EA fail👍Others will fill the void and hopefully learn that poisoning the well is a very bad idea... TBH same applies to all these money grabbing corporations, just don't care equally I vote with my wallet as are many more these days.
Most I think are waking up to companies churning out time limited garbage, in the case of games broken garbage, ever changing TOS and are looking for better solutions from companies that actually value their customers not solely the shareholders & executive's bonuses.
Q-6
Most I think are waking up to companies churning out time limited garbage, in the case of games broken garbage, ever changing TOS and are looking for better solutions from companies that actually value their customers not solely the shareholders & executive's bonuses.
Q-6