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this post was submitted on 30 Sep 2025
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Are they? EA isn't some company that was on its last legs. They're taking a healthy hog to slaughter. It is going to take some time to reach the marrow.
They made 1.5b in revenue last year, and the company was bought for 55b. The math does not make sense.
Absolutely. A $20bn loan which the company has to pay off is a classic example of predatory asset stripping.
The only way this deal makes sense is if they intend to slash costs massively and sell off assets. Using generative AI is just another way of saying sacking people to save money. This is another example of what is good for the shareholders not being good for the company.
I'm no fan of EA but they have 14500 employees plus countless more people dependent on them in companies that work with them. They are the ones who will pay the price as EA is dismantled and destroyed.
Gamers will also suffer for a short while as they end up buying AI generated slop but that will decline rapidly as the companies reputation and brands tank.
Not sure where you got your numbers. GAAP Net revenue for FY25 was $7.5B.
https://ir.ea.com/press-releases/press-release-details/2025/Electronic-Arts-Reports-Q1-FY26-Results/default.aspx#%3A%7E%3Atext=In+fiscal+year+2025%2C+EA%2Crevenue+of+approximately+%247.5+billion.