EA's $55 billion privatization transaction surprised everyone in the industry. Although most people have negative opinions on this, some analysts have seen some positive things, such as this may allow EA to develop new games and new IPs.
EA's decision to privatize the company through Saudi Arabian Public Investment Fund, Silver Lake Capital and Affinity Partners investments may eventually drive its strategy to develop new series and new games, according to well-known analysts in Yiming.
According to PC Gamer, Play Ventures analyst Phylicia Koh said EA will no longer let public investors scrutinize their every move, so that it can focus on developing a more unique and creative product line, “In theory, [privatization] can provide EA with a breathing space to drive innovation in new IPs and new games.”
However, some other analysts believe that the worst case scenario may lead to the opposite outcome, as similar investments in the past often make companies more cautious in operating IP.
In addition, EA already has a number of huge revenue-generating IPs, with annual revenue of nearly US$7.5 billion.Philip Alberstat, general manager of DBD Investment Bank, believes that EA may focus on using these IPs to repay its $20 billion debt, "this cash flow gives EA a real ability to repay its $20 billion debt."
Although EA has confirmed that it will not reorganize immediately, developers of its multiple studios, including BioWare, are still worried about the future after the acquisition.