EA LBO Deal and Mobile Pivot Commentary

26 days ago

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"But if the Saudis can monetize by expanding EA into mobile, because EA sucks at mobile. You know, so they're able to take these properties like soccer and football and Star Wars and Battlefield and The Sims and make mobile games that work. They'll double that cash flow."

Electronic Arts (EA) is being taken private in a $55B leveraged buyout. Commentary highlights that despite flat revenues and stagnant growth, the new investor group (including Saudi interests) sees potential by pivoting EA from its traditional game sales model to exploiting mobile and free-to-play segments. The expectation is that a successful mobile transition could potentially double EA's free cash flow, which serves as a rationale for the high valuation premium in the deal.

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