The buyers are committing $36 billion of their own equity (briefly and inexpertly, "equity" is the value of your assets after you deduct anything you owe), including the value of the PIF's existing investments in EA. They're making up the rest of the total thanks to a $20 billion loan from JPMorgan Chase Bank. How will they manage that massive debt? According to the Financial Times, who cite unnamed insiders, they're gambling on the deployment of generative AI tools as a gigantic cost-saving measure.

"The investors are betting that AI-based cost cuts will significantly boost EA's profits in the coming years, people involved in the transaction told the Financial Times," the paper wrote (paywall) in their own coverage of the story. The FT elsewhere commented that the acquisition "is a huge bet that artificial intelligence can significantly cut EA's operating costs, allowing the equity consortium to manage a large debt load on a company that historically carried limited net debt."

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[–] 9 points 1 year ago* (last edited 1 year ago) (5 children)

Bye EA. Was nice knowing you.

E: just noticed I’ve been playing EA games since M.U.L.E. on the C-64. Say what you want about the company itself, but they have a long history of making games people want to play. Been playing the entire Battlefield franchise since 1942. Sucks that you can’t play 2142 or even Hardline anymore.

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  • [–] 2 points 1 year ago (3 children)

    Been playing the entire Battlefield franchise since 1942

    Note to readers: 1942 is the name of a game, not the year of release

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  • [–] 3 points 1 year ago (2 children)

    Hence the italics to denote a title and not a generic date.

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