These buyouts usually end up being done by dropping the buyout amount into the company as debt. So EA now has $55B in debt to pay off. Time for more layoffs!
This is exactly why Microsoft has been laying people off left and right. They went on a spending spree to buy studios, including $75B for Activision Blizzard, and within like two years started closing studios because they had a giant debt on paper
Yep… Truly insane that it’s legal to make a company pay for itself like that. It’s a recipe for anti-competitive practice sauce a main course of destruction of wealth creating capabilities
Yeah, normally I would celebrate this sort of decision, if it wasn’t for:
Is $55bn low or high?
These buyouts usually end up being done by dropping the buyout amount into the company as debt. So EA now has $55B in debt to pay off. Time for more layoffs!
This is exactly why Microsoft has been laying people off left and right. They went on a spending spree to buy studios, including $75B for Activision Blizzard, and within like two years started closing studios because they had a giant debt on paper
Yep… Truly insane that it’s legal to make a company pay for itself like that. It’s a recipe for anti-competitive practice sauce a main course of destruction of wealth creating capabilities
I’m gonna need you to explain how the Saudis paying the shareholders of EA creates an equal sized debt the company (now the Saudis) has to repay