In a move that sent ripples through the gaming world, Electronic Arts recently announced a staggering $55 billion deal to go private. This massive leveraged buyout (LBO) involves a new ownership group including Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and the private equity firm Silver Lake. The deal, which is the largest of its kind, burdens EA with a hefty $20 billion debt. According to several prominent industry analysts, the quickest path for EA to alleviate this financial burden is by divesting some of its development studios and selling off non-essential assets.
BioWare, the acclaimed studio behind fan-favorite series, is reportedly a prime candidate for sale. The studio has faced considerable challenges over the past decade, including its game, Dragon Age: The Veilguard, falling significantly short of EA’s sales expectations. This underperformance led to numerous layoffs within the studio. Currently, a much smaller team at BioWare is dedicated to developing the next Mass Effect title, a prospect that might attract potential buyers.
Meanwhile, EA is heavily investing in the promotion of Battlefield 6, its flagship first-person shooter designed to compete with Activision’s Call of Duty franchise. While this currently provides a degree of safety for DICE, the studio primarily responsible for the game’s multiplayer, analysts warn that its fate could change if Battlefield 6 fails to meet performance targets.
Maxis, the studio behind the incredibly successful The Sims 4, appears to be in a more secure position as The Sims remains one of EA’s highest-earning franchises. However, David Cole, president of DFC Intelligence, suggests that even Maxis could be sold if a sufficiently attractive offer were to emerge. Cole also anticipates widespread layoffs across EA’s studios, regardless of whether they are acquired by other companies.
As Cole explained, “Leveraged buyouts are historically followed by cutbacks and the sale of non-essential assets in the short-term. Long term, this can allow a company like EA to focus on more creative risky ventures, as they are not beholden to public shareholders. But short term, we expect them to focus more on core money generators and look to get top dollar for ‘secondary’ IP/products.”
It’s crucial to remember that this deal is not yet finalized and may not close until EA’s fiscal year 2027, beginning in April 2026. The coming years could see significant changes in the landscape of Electronic Arts and its extensive portfolio of intellectual properties.
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