Particle.news
Download on the App Store
26 ARTICLES
·
1h ago

EA’s $55 Billion Take-Private Prompts ‘No Immediate Changes’ Pledge as BioWare Staff Worry

EA tells staff their roles won’t change immediately despite warnings that the new debt load could trigger cuts.

FILE - Attendees line up at the Electronic Arts booth to play the Battlefield 3 video game at the Electronic Entertainment Expo in Los Angeles on June 8, 2011. (AP Photo/Damian Dovarganes, File)
Image
Image
Image

Overview

  • EA agreed to be acquired for $210 per share in a $55 billion deal led by Saudi Arabia’s Public Investment Fund with Silver Lake and Affinity Partners, funded by about $36 billion in equity and roughly $20 billion in JPMorgan debt.
  • An SEC-filed employee FAQ says jobs, teams, daily work and culture will not change immediately, the executive team will remain, and closing is expected in six to nine months.
  • Anonymous BioWare developers told Insider Gaming they are preparing portfolios and fear layoffs after Dragon Age: The Veilguard engaged about 1.5 million players versus a 3 million goal and earlier studio cuts.
  • Industry analysts and ex-BioWare executive Mark Darrah predict cost reductions, studio consolidation or sales, and a sharper focus on live services and sports to help service the debt.
  • Reporters and analysts say regulators could scrutinize the PIF’s role and potential data concerns before the transaction receives required approvals.