They’re cracking it open and sucking out the marrow.Just like every other time private equity has “leverage buyout”-ed a company into the ground.
They’ll pay themselves billions in executive compensation and then move on like locusts.
They’re cracking it open and sucking out the marrow.
Are they? EA isn’t some company that was on its last legs. They’re taking a healthy hog to slaughter. It is going to take some time to reach the marrow.
They made 1.5b in revenue last year, and the company was bought for 55b. The math does not make sense.
Absolutely. A $20bn loan which the company has to pay off is a classic example of predatory asset stripping.
The only way this deal makes sense is if they intend to slash costs massively and sell off assets. Using generative AI is just another way of saying sacking people to save money. This is another example of what is good for the shareholders not being good for the company.
I’m no fan of EA but they have 14500 employees plus countless more people dependent on them in companies that work with them. They are the ones who will pay the price as EA is dismantled and destroyed.
Gamers will also suffer for a short while as they end up buying AI generated slop but that will decline rapidly as the companies reputation and brands tank.
Yeah if the focus on dog shit “gacha” style mobile games this could work out well for them.
Quickly spin up a game skinned and “written” about who ever or whatever is popular, team up with k-pop or make some freedom style trump loot boxes. The game play minimal so no need to spend there.
Using AI assets they can fling shit at the wall and see what sticks.
This is gonna be so fucking funny
The best part is the IP will go cheap in a few years.
I have some bad news for the new owners.
I kinda hope EA doesn’t deliver much return on this bet. I sure won’t consume anything from them, anyway. Even put in a request to remove my EA Account.
