Electronic Arts may undertake a large-scale cost reduction after the completion of the $55 billion acquisition deal. According to Bloomberg journalist Jason Schreier, EA plans to save about $700 million.
The deal became one of the largest leveraged buyouts in history. Investors contributed approximately $36 billion, and the remaining approximately $20 billion was covered by a loan, which now hangs over the company.
Part of the savings, about $170 million, is to be achieved through "organizational efficiency." In practice, this could mean mass layoffs, the closure of individual studios, and the cancellation of some projects.
At the same time, EA still has to pay off a huge debt, which raises concerns among players. Many believe that the company may increase monetization in its games to boost revenue.
Electronic Arts has not yet officially confirmed plans for cost reduction, but the need to repay the $20 billion debt could lead to significant changes within the company.