Report: EA Preparing for Mass Layoffs to Save $700 Million Following $55 Billion Buyout
Hennadiy Chemеris
Electronic Arts said its $55 billion acquisition by a consortium led by the Public Investment Fund, Silver Lake, and Affinity Partners has officially closed. The publisher is now a private company and will leave NASDAQ after 36 years.
The deal is valued at $55 billion and is being described as the largest financed buyout in history. According to the reported terms, EA shareholders will receive $210 per share in cash.
The ownership split now gives the Public Investment Fund 93.4% of Electronic Arts, while Silver Lake holds 5.5% and Affinity Partners owns 1.1%. The buyout also leaves EA carrying about $18 billion in debt.
That debt load is already fueling concerns about what comes next. Bloomberg reporter Jason Schreier said EA plans to cut $700 million in annual costs, including $170 million in so-called organizational efficiencies, and sources cited by multiple outlets say those measures could lead to mass layoffs.
Andrew Wilson framed the change as a fresh start for the publisher.
We're entering this next chapter from a position of strength with partners who share our vision and ambition.
Wilson also said EA plans to invest boldly, accelerate innovation, and build the next generation of games and experiences. The question now is whether those ambitions can survive the pressure of $18 billion in debt and the push to slash costs.
Earlier, consortium to close EA's $55 billion.
Can EA keep investing boldly while carrying $18 billion in debt and facing layoffs fears?
-
Is this the future of consoles? Electronic Arts has launched the F1 25 racing simulator with Path Tracing on the PS5 Pro -
46 congressmen in the United States demanded to check whether the fund from Saudi Arabia legally bought Electronic Arts -
EU poised to approve Saudi-led $55 billion acquisition of Electronic Arts