Electronic Arts recently revealed a massive $55 billion agreement to transition into a privately held company. This landmark deal, considered the largest leveraged buyout ever, involves a consortium including Saudi Arabia`s Public Investment Fund, Jared Kushner`s Affinity Partners, and Silver Lake. To manage the substantial $20 billion debt incurred, analysts believe EA will likely divest certain studios and assets.
According to reports, BioWare is frequently cited as a prime candidate for divestiture, largely due to its performance challenges over the past decade. The studio`s recent title, Dragon Age: The Veilguard, reportedly failed to meet EA`s sales expectations, leading to subsequent layoffs. However, a smaller team is currently developing the next Mass Effect installment, which could attract potential buyers.
While EA is heavily investing in the promotion of Battlefield 6, a direct competitor to Activision`s Call of Duty, ensuring the current safety of DICE – the studio behind the game`s multiplayer – analysts caution that its status could change if Battlefield 6 underperforms.
Maxis, responsible for the highly successful The Sims 4, is generally considered secure from a potential sale. Nonetheless, DFC Intelligence president David Cole suggested that even Maxis might be sold if a sufficiently attractive offer emerges. He also foresees significant layoffs across various EA studios, regardless of whether they are acquired by other entities.
Cole elaborated on the implications of leveraged buyouts, stating: “Historically, LBOs are followed by cutbacks and the sale of non-essential assets in the short-term.” He added that while this can enable long-term focus on “more creative risky ventures” by freeing the company from public shareholder demands, the immediate strategy will be to “focus more on core money generators and look to get top dollar for `secondary` IP/products.`”
It`s important to remember that this acquisition is not yet finalized and might not conclude until EA`s fiscal year 2027, commencing in April 2026. EA possesses a vast portfolio of properties and intellectual assets.