EA Acquisition in FY2027: Layoffs, Studio Closures Feared
Electronic Arts (EA) is set to be acquired in the first quarter of FY2027, with a deal valued at $55 billion. The acquisition, backed by Affinity Partners, Silver Lake, and the Saudi Arabia Public Investment Fund (PIF), is subject to regulatory and EA stockholder approvals.
Former BioWare executive producer Mark Darrah has raised concerns about potential layoffs and studio closures following the acquisition. He believes EA's $20 billion debt could lead to cost-saving measures, including job cuts in game studios, financial, and PR roles in the short term.
EA has reassured employees that there will be 'no immediate changes' to their jobs. However, Darrah suggests that in the medium term, the acquisition could result in studio closures or the sale of intellectual properties (IPs) from EA's large repository of dormant ones to reduce debt.
Darrah expects EA Sports to remain largely intact, but EA Entertainment and its non-sports releases may be sold off. In the long term, the acquisition could benefit EA as a private company, allowing it to approach financials more flexibly.
The acquisition of EA is expected to close in the first quarter of FY2027, with potential impacts ranging from short-term layoffs to medium-term studio closures or IP sales. However, EA has assured employees of no immediate job changes, and the long-term effects could be beneficial for the company's operations as a private entity.
