you are viewing a single comment's thread
view the rest of the comments
[–] 33 points 3 months ago* (10 children)

Anyone who did not see this coming is an idiot.

EA is... in a loooot of debt lol. Thats why they needed a buy out.

  • source
  • hideshow 10 child comments
  • [–] 5 points 3 months ago (1 child)

    They've not had a lot of success in the 2020s except for sports games they obviously pay a lot of money in licensing fees for.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 8 points 3 months ago (5 children)

    They are in a lof of debt because of the buy out.

  • source
  • parent
  • hideshow 5 child comments
  • [–] 10 points 3 months ago (3 children)

    They're also in a lot of debt from making dog shit for the last 15 years.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 5 points 3 months ago (2 children)

    They've been making dogshit for a lot longer than that.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 4 points 3 months ago

    Kind of yes, but actually no.

    We just see that debt now, its explicit.

    EA ... was subject to a leveraged buy out, that they sought out. They did this... because they needed cash, now.

    What that means is that their internal financials were an absolute shit show... that they had, up untill that point, basically just legally lied about, hid, downplayed.

    They fluffed up their balances and returns and cashflows in ways that are legal to do, but if you actually do due dilligence, you could read the writing on the wall.

    Its basically the same as any other US company that got bought out / sold itself to private equity in the last 10 or 15 years.

    Difference is, EA is so huge, it had to be bought out by essentially a sovereign wealth fund.

  • source
  • parent