EA May Need to Lay Off Staff in an Attempt to Cover Interest Payments Involving Debts from Its $18 Billion Buyout Deal

[Peter_Brosdahl]

The buyout of Electronic Arts is now complete, and it looks as if some serious decisions are now going to have to be made just to cover interest debt payments. The deal, reportedly said to be worth $18 billion, is said to have incurred a roughly $1.8 billion annual interest payment from EA. As scary […]

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[Grimlakin]

Needs a little context here... EA was purchased by Silver Lake (Saudi investment firm spending current oil money to diversify their investment portfolio's.) and Affinity Partners (Jared Kushner aka trump baby).

They buyout was for some 55 billion in a leveraged buyout to take EA public.

What's going to happen now largely depends on if Silver Lake can sever the Kushner effect or did it correctly and avoid bankrupting/folding EA in the next 5 years.

Because this man is following the lead of someone who managed to bankrupt a CASINO.... A EFFING CASINO?!

 

[Brian_B]

I love how the new vulture capital trick is to somehow buy a company, and make that company swallow all the debt you just bought them out with, then suck all the marrow from the bone and bankrupt the thing billions of dollars in debt. Somehow that simultaneously nets huge profits for the new owner while shoving it straight up the pooper for any debt holder after they finally put a bullet in the head of old Spot and throw him in a hole in the field.

 

[Grimlakin]

I love how the new vulture capital trick is to somehow buy a company, and make that company swallow all the debt you just bought them out with, then suck all the marrow from the bone and bankrupt the thing billions of dollars in debt. Somehow that simultaneously nets huge profits for the new owner while shoving it straight up the pooper for any debt holder after they finally put a bullet in the head of old Spot and throw him in a hole in the field.

It's the classic pump and dump...

 

[Ditchinit]

Would the world be better off without EA?

 

[Uvilla]

shoving it straight up the pooper for any debt holder after they finally put a bullet in the head of old Spot and throw him in a hole in the field.

I get the rest of the process... This part is the one I do not understand, youd think this would happen
.... Ever so rarely, since who wants to eat a bunch of debt like this... But its almost like this is the system of wealth and power transfer, banks are just there to print the money in this casino.... Ahaha i said almost.

 

[Brian_B]

Would the world be better off without EA?

Once upon a time they had some redeeming qualities, but I think they have been soulless since long before this buyout.