Electronic Arts’ $55 Billion Deal
Electronic Arts has been the subject of M&A chatter for several years, but the type of deal that was presented on September 29 was a surprise. It is the result of the position of EA to be a heavyweight video game publisher, but not one that is connected to a proprietary console device – the vertical integration factor that gives Microsoft, Sony PlayStation, and Nintendo weight.
The Shocking Deal
"There is a lot of shock just because this is a big deal and it is a big change. And it is definitely the largest private equity Buyout in this area," says Jennifer Maas. “For the most part, the Big Dogs Playstation, owned by Sony, Xbox from Microsoft, and then Nintendo, and these are companies that also have consoles. If we then look at someone like EA, the closest comparison is like a take-two-interactive or ubisoft who have no consoles because they have no console that are bound to them is."
EA’s Franchise Companies
The largest franchise companies in EA include its sports motifs: "Madden NFL" and a variety of titles connected to football, hockey, and golf. It is also the home of "The Sims" and "Battlefield" that will publish its sixth incarnation next month. "It’s a big role for you."
The Potential New Owners
The potential new owners hope to complete the deal by June. Andrew Wilson will keep his grip as CEO after the transaction with the private equity group PIF, Silver Lake, and Jared Kushner’s affinity partner supported by Saudi Arabia. Wilson is highly viewed in the game industry after more than 10 years, says Maas.
No Poor Leadership
“None of it [impetus to sell] I thought that EA was led poorly, "she says.
Bad Bunny’s Super Bowl Appearance
Thania Garcia has a bad bunny in recent years when he drove out of the Reggaeton world to make one of the most successful pop stars in the world. The NFL has made a strategic decision to tap its fans and Latin American viewers onto the artist who was born Benito Antonio Martínez Ocasio.
A Streaming Juggernaut
"Bad Bunny is a streaming – Juggernaut – the most streamed artist in a row worldwide. It makes perfect sense that the NFL would align him if it polish her international attraction," says Garcia.
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