They’re taking on debt to buy this deal, which they will put on the company.
That right there, that’s how they ruin companies. Anyone remember Toys R Us?
There’s an entire list of companies that private equity have ruined
Comment on It’s official: EA is selling to private equity in $55 billion deal
Gaywallet@beehaw.org 19 hours agoActually, it’s pretty clear they are planning on completely gutting this company. They’re taking on debt to buy this deal, which they will put on the company. Their pitch is to eliminate jobs with AI (which they probably know won’t work) which means they’ll cut most of the staff and “replace” it with AI, likely contracts with companies they own so that they can continue to leech off whatever income comes in from game sales. The company will continue to churn out trash and make some money by repeating last year’s sports game this year but now with AI coding until it eventually declares bankruptcy and is either auctioned off to be stripped for what’s left of its parts or simply shutters forever.
Midnitte@beehaw.org 17 hours ago
JillyB@beehaw.org 18 hours ago
I doubt it. The Saudi-Arabian monarchy doesn’t invest in things because they want to make money. They do it for power, image, and influence in the world. They just threw a lot of money into the E-sports world cup in Riyadh. I think they’re buying what’s needed to make Saudi-Arabia a gaming hub. They’re doing the same thing with sports and racing and all sorts of entertainment. For that reason, I doubt they’ll strip EA for parts. All of the competitive games that EA makes will suddenly have tons of prize money and developer-backing for competition and E-sports. And the final big event will always be in SA.
Gaywallet@beehaw.org 18 hours ago
Yea fair there is definitely the sportswashing angle on this, but they are absolutely leveraging debt for this purchase which they will put on the company. Their deck also talks a ton about AI, which is where the AI/stripping angle comes from. As to whether they can just ignore the debt because oil money, that’s I suppose another question entirely.