Saudi-acquired EA is reportedly planning to make massive cuts after taking $18 billion of debt, and we all know what that means

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Saudi-acquired EA is reportedly planning to make massive cuts after taking $18 billion of debt, and we all know what that means

PC Gamer · 4 hours ago

Electronic Arts, which was recently acquired in a $55 billion buyout led by Saudi Arabia's Public Investment Fund alongside Silver Lake and Affinity Partners, is reportedly preparing significant job and studio cuts. The deal loaded EA with roughly $18 billion in debt, and such heavily leveraged buyouts have historically been followed by cost-cutting drives to service that debt, raising concerns among staff and industry observers about the publisher's future direction.

Details of the reported cuts have not been fully specified, but the pattern is a familiar one in the games industry, where private equity-style acquisitions are frequently followed by layoffs, studio closures or cancelled projects as new owners look to recoup their investment. EA is one of the largest publishers in gaming, with franchises including EA Sports FC, Battlefield and The Sims, meaning any large-scale restructuring could have a wide impact on staff and future releases.

  • EA reportedly planning major cuts after $18 billion debt-funded Saudi-backed buyout
  • Deal led by Saudi PIF, Silver Lake and Affinity Partners loaded EA with debt
  • Leveraged buyouts typically precede layoffs, fuelling concern over EA's future

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