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

[Otter]

JRPGfan said:

Otter said:

A companies value is like an accumulative worth inlcuding all their IPs and assets, so naturally it should take quite a few years to make back the cost of purchase otherwise they're selling for too low. 50bn sounds pretty fair 

Would you buy a company that takes over 50 years to earn back, the cost you bought it for?
Do you plan to live forever? or don't care if it takes your entire lifetime before it happends? happy to pass it onto your kids ect?

Would I Personally? No. But I'm not a media empire, nor a Saudi Kingdom. The nature of investments for such huge entities is way longer term.

None the less translate this to property and you will understand that this kind of undertaking is not uncommon, even though your 50 year estimation is on the extreme end. A quick check reveals 15–25 years is normal turnover period for property rentals.

With EA 50 Years would assume no growth plan, no cost cutting, no sellings of IPs or Assets, nor any further investors. I think 10-30 years is more likely and just to put that into perspective, the first Mass Effect debuted just under 20 years ago. It's not exactly lifetimes back. 

Last edited by Otter - on 01 October 2025