Electronic Arts Leveraged Buyout: A Big Deal With Mixed Gaming Tailwinds

24 days ago

Brett Schaefer

"This is a $55 billion deal — the largest levered buyout ever, with a 25% premium to EA share price. Despite EA\'s great franchises, I would throw it in the too hard pile because gaming has become relentlessly competitive and cash flow remains stubbornly low."

The discussion turns to EA and its leveraged buyout, which is being executed at a premium. While EA boasts a legacy of blockbuster franchises, competitive pressures and digital transition challenges have hindered margin expansion and free cash flow. The panel acknowledges that the deal was structured as a premium exit but sees gaming tailwinds as mixed.

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