Threads
- EA has gone private following a $55 billion buyout from three notable investment firms, including PIF, Silver Lake, and Affinity Partners.
- Silver Lake is also purchasing TikTok and is a firm believer in AI implementation, which signals more workforce reduction and cost-cutting measures.
- This signals a tough time for franchises like Battlefield, Sims, and Apex Legends, with other projects, such as Motive’s Iron Man, now at risk of cancellation.
Confirming last week’s rumors, EA has secured a deal to go private following a massive $55 billion investment from three major firms: Saudi-owned PIF, Silver Lake, and Affinity Partners, the American company founded by U.S. President Donald Trump’s son-in-law, Jared Kushner.
However, the internet hasn’t taken kindly to this deal, with massive backlash on social media. In fact, many are even questioning the future of the publisher’s gaming franchises, as EA’s hierarchy is expected to change for the worse under this new leadership.
Why it matters: Acquisitions among billion-dollar companies rarely turn out well, especially now, with EA being acquired by investment firms rather than another gaming company. The future of the gaming giant appears quite gloomy.
One person on social media pointed out that one of the investment firms from this deal, Silver Lake, is the same company that has secured a deal to purchase TikTok. Furthermore, all of these firms are quite reliant on AI for their workloads, which is a sign of more layoffs to come in the near future.
The harsh reality of EA being bought
byu/dubdimmadome inBattlefield
Bloomberg’s Jason Schrier reports that EA will be in $20 billion in debt following this deal. As such, the gaming giant will soon implement cost-cutting measures, aggressive monetization, and workforce reductions, marking EA’s second round of layoffs this year.
Another social media post says that this deal is the most ‘EA’ thing ever since the publisher is known for its greed and being a capitalist rather than caring about video games.
What does this mean for the future of franchises like Battlefield, Sims, FC, and others? Saudi Arabia is known for being conservative and, as such, expects a lot of anti-DEI changes in games like Sims and more.
With a $20 billion debt once the deal closes, expect cancellations too. Motive’s Iron Man game may never get to see the light of day, receiving the same treatment as the previously shelved Black Panther game.
What are your thoughts on EA going private? Are you worried about the publisher’s future? Share your thoughts with us in the comments below, or at the official Tech4Gamers Forums.
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[Staff Writer]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheerzahid03@gmail.com
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