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

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. 



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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.



As per Bloomberg's Jason Schreier:

My colleagues at Bloomberg report that the $20 billion debt in the EA deal is expected to be rated single-B — meaning it is considered a "junk" loan, or one that is high-risk and speculative, typically offering high interest rates. Which the new EA will have to pay
www.bloomberg.com/news/article...

[image or embed]

— Jason Schreier (@jasonschreier.bsky.social) 1 October 2025 at 05:10



curl-6 said:

As per Bloomberg's Jason Schreier:

My colleagues at Bloomberg report that the $20 billion debt in the EA deal is expected to be rated single-B — meaning it is considered a "junk" loan, or one that is high-risk and speculative, typically offering high interest rates. Which the new EA will have to pay
www.bloomberg.com/news/article...

[image or embed]

— Jason Schreier (@jasonschreier.bsky.social) 1 October 2025 at 05:10

High risk and high interest rates that EA will have trouble paying off. EA will be hit with layoffs and I wouldn't be surprised if studios not working on their biggest IPs are shut down or sold off.



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curl-6 said:

As per Bloomberg's Jason Schreier:

My colleagues at Bloomberg report that the $20 billion debt in the EA deal is expected to be rated single-B — meaning it is considered a "junk" loan, or one that is high-risk and speculative, typically offering high interest rates. Which the new EA will have to pay
www.bloomberg.com/news/article...

[image or embed]

— Jason Schreier (@jasonschreier.bsky.social) 1 October 2025 at 05:10

So EA went from Electronic Arts to become Expensive Assets.



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Bofferbrauer2 said:

So EA went from Electronic Arts to become Expensive Assets.

They haven’t actually been making electronic “art” for a very long time now so I suppose it was time.



According to the Financial Times, EA’s new owners are going to lean heavily on AI to cut costs,



JRPGfan said:
SanAndreasX said:

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.

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 



S.Peelman said:
Bofferbrauer2 said:

So EA went from Electronic Arts to become Expensive Assets.

They haven’t actually been making electronic “art” for a very long time now so I suppose it was time.

Yeah, but I didn't want to remember their long Endemic Assholes era, so went from the Trip Hawkins era directly to now.



SanAndreasX said:

According to the Financial Times, EA’s new owners are going to lean heavily on AI to cut costs,