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7h ago

Analysts Warn of Cuts as EA’s $55 Billion Take-Private Looms

Analysts say the $20 billion debt tied to the buyout incentivizes near-term cost cutting with potential studio divestitures.

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Overview

  • EA disclosed a $55 billion take-private led by Saudi Arabia’s Public Investment Fund, Affinity Partners, and Silver Lake, described as the largest leveraged buyout to date.
  • Closing is not expected until 2026, with no immediate operational changes announced.
  • Analysts highlight BioWare as a likely sale candidate following Dragon Age: The Veilguard’s shortfall, with DICE’s outlook tied to Battlefield 6 performance and Maxis viewed as safer.
  • DFC Intelligence forecasts layoffs and the sale of non-essential assets as typical post-LBO steps, though private ownership could later allow riskier creative bets.
  • CEO Andrew Wilson says he plans to stay for now, as the PIF’s role invites renewed scrutiny over human-rights concerns linked to Crown Prince Mohammed bin Salman.