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EA's new owners are making "a huge bet" on generative AI cost-cutting to help repay a $20 billion loan, claims report (www.rockpapershotgun.com)
submitted 1 year ago by [B] to c/gaming@lemmy.zip
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[–] 40 points 1 year ago (4 children)

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.

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  • [+] 5 points 1 year ago (3 children)
    [deleted]
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  • [–] 17 points 1 year ago (2 children)

    They made 1.5b in revenue last year, and the company was bought for 55b. The math does not make sense.

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  • [–] 11 points 1 year ago

    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.

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

    This is gonna be so fucking funny

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    • [–] 19 points 1 year ago

    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.

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    [–] 9 points 1 year ago

    I have some bad news for the new owners.

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    [–] 4 points 1 year ago*

    I can only imagine that the woman in the pic is laughing at this ridiculous headline. Guess what, EA, this is a terrible bet. You’ve fucked yourself.

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    [–] 3 points 1 year ago

    Thanks for the warning I guess.

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    [–] 1 point 1 year ago

    I can't wait until EA's IPs gets sold and teams reassemble at better companies.

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