WSJ: video game giant EA nears roughly $50bn deal to go private

[JRPGfan]

SanAndreasX said:

JRPGfan said:

How is EA worth 50bn ? honest question.

If you spend that much buying them.... is it even possible to earn back that amount within say 20 years?

(do investors need to look like 50-100 years into the future for a payoff?)

EA Sports, especially Madden, FC, and NCAA. Those games are guaranteed money-printers and are regular features of top 10 best-selling games by year. That's how. And it goes along with Saudi Vision 2030, where Prince MBS continues to sportswash his regime. Games like It Takes Two and Split Fiction help as well. Batllefield and Apex Legends. 

This is a leveraged buyout as well, being financed with $20bn in debt. EA is the collateral for that debt, which means it's on EA to pay back the debt they incurred in that buyout. 

I googled it and apparently they have like 7bn in revenue pr year, and a net profit of around 13%.
So like 13% x 7bn = a years worth of reducing that 50bn buy.

However theres stuff like inflation, and what if things go bad? ei, profits fall afterwards or such?
I don't know, it just seems like it would take along time to make that amount back.