The gaming industry shifted just a little earlier today, as it has been reported by the Wall Street Journal that EA FC 26 Publisher Electronic Arts will be private. The report claims that a group of investors gather to take the company privately, including the private equity company Silver Lake, and Saudi Arabia's public investment fund, and that a deal can meet as soon as next week.
According to the report, discussions about the price are still underway, but given that electronic art has a current estimated value of about $ 43 billion, it is expected that the purchase can be as large as $ 50 billion. It would make it the largest leverage expression of all time by a lot of margin, at the previous highest purchase was made when a group of Private Equity companies bought out Texas Utility Company TXU as early as 2007 for about $ 32 billion.
Why does EA actually play privately?
Now you are probably sitting there wondering exactly what this means for electronic art as a whole and the game it does. To begin with, EA Going Private means that it will no longer be owned by the public, which means that its shares will be removed from the stock exchange and will instead be owned by private investors.
By going private, there are some advantages that EA will be able to benefit from, for example, a lower level of audit thanks to the fact that it is no longer owned in public. EA will be monitored by both the public and the government much less, which means that it can implement different long -term strategies that do not seem to be advantageous here and now. It also does not need to calm public shareholders, which means that the company can take more risks.
You could see this as both a good thing and a bad thing, since less state monitoring of all companies is, of course, a bit about, especially when it comes to a company like EA who loves to spade micro -transactions in their games when it can. On the back, I guess it shows that EA may think about long -term and going private will help it achieve long -term goals.
However, this news should not really affect how EA makes games, unless the company is one day in difficult financial problems and can no longer fall back on selling shares. We have to see how it all shakes out, but EA to go private is definitely a fairly seismic change for the company.
- Date founded
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May 27, 1982
- CEO
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Andrew Wilson
- Head office
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Redwood City, California, USA
