- Notable analyst Phylicia Koh claims that EA going private may finally lead to new games and franchises.
- Public investors would not have any hold over EA, possibly pushing it towards a new era of creativity.
- Other analysts argue EA may stick to its current IPs, given how past investment deals have gone in the industry.
EA’s unexpected $55 billion acquisition has raised a lot of eyebrows among gamers and analysts in the industry, with many existing narratives projecting a negative outlook. However, one analyst argues that something quite positive could emerge out of this deal.
A notable analyst argues that the company’s move to go private, backed by investments from Saudi Arabia’s Public Investment Fund, Silver Lake Partners, and Affinity Partners, may finally result in a strategy to develop new franchises and games.
Why it matters: While many gamers have criticized the $55 billion EA investment deal, the analyst argues that it may help the company push new franchises and games due to no pressure from public investors.
As reported by PC Gamer, Phylicia Koh, the Play Ventures analyst, claims that EA will no longer have public investors scrutinizing its every move, allowing it to focus on a more unique and creative pipeline moving forward.
[Going Private Could] in theory give EA breathing space to push innovation in new IP and titles.-Phylicia Koh, general partner at Play Ventures.
However, some other analysts clarify that the opposite could happen in the worst-case scenario since similar investments in the past have resulted in more cautious portfolio management across the industry.
Additionally, EA already owns a variety of money-making IPs, generating nearly $7.5 billion yearly in revenue. Analyst Philip Alberstat argues EA will likely focus on paying off its $20 billion debt using them.
That flow of cash gives EA a real capacity to service the $20 billion in debt.
-Philip Alberstat, managing director at DBD Investment Bank.
While EA has confirmed that there won’t be immediate restructuring efforts, the developers under its various studios, including BioWare, are still concerned about their future following the deal.
Do you think EA going private in the massive $55 billion deal will result in more unique franchises and games moving forward, or will the opposite happen instead? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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