An updated version of an FAQ shared with EA employees addresses concerns that the company will be over-encumbered with the $20 billion debt it stands to absorb following the closure of its pending leveraged buyout, as well as fears that EA games could face creative restrictions or censorship under new owners – notably including Saudi Arabia's Public Investment Fund.
On September 29, an initial draft of this FAQ assured EA employees worried about layoffs that there would be "no immediate changes" to jobs, among other things. An updated version of the FAQ, dated October 30 and posted by the US Securities and Exchange Commission, expands and adds several questions and points.
One new section asks, "Will the debt impact our ability to invest in and grow the business?"
EA says, "No. Through strong cash generation, we will continue pursuing organic and inorganic growth opportunities as a private company, even with the new debt." This reads as the company insisting it won't suddenly pause or downscale all growth ventures in order to shovel as much money as possible into the $20 billion debt hole.
Additionally, EA writes, "The Consortium also expects to invest in our business, enabling us to accelerate innovation and unlock new growth opportunities." Rather than a super villain headquarters, The Consortium is the collective term for the three buyers in this EA deal: the Saudi PIF, private equity firm Silver Lake, and Jared Kushner's Affinity Partners.
EA notes it will "sunset" shareholder return programs as a private company. Returning directly to growth, it adds that, "The same discipline and operational excellence that’s made us successful will continue to guide how we invest and deliver for our global communities."
This FAQ previously examined how EA's "culture" may change "as a result of this deal." Two new points have been added to this section. "The Consortium believes in our vision, our leadership and the strength of our teams," the first claims. "They are investing in EA because they believe we are uniquely positioned to lead the future of entertainment."
The second point reads: "EA will maintain creative control and our track record of creative freedom and player-first values will remain intact."
Underneath, a new section directly interrogates, "What influence will these stockholders have on creative or business decisions?"
EA says its mission to "Inspire The World To Play" will remain "unchanged," and repeats that "our creative freedom and player-first values will remain intact."
The company doesn't single out some of the specific values that players and developers have worried could be on the chopping block – like the "very progressive messaging" seen from studios like Bioware, as studio vet Mark Darrah put it – but it does offer more broad assurances of creative expression.
"The Consortium believes in our vision, our leadership and our focus on creating games, stories, and content that reflect a range of experiences and delivering them to our global player community," EA says. "They're investing in the creativity that defines EA."
The EA buyout is projected to close within six to nine months. It has faced scrutiny from US senators concerned about "the foreign influence and national security risks," and from game developers asking government regulators to ensure "any path forward protects jobs, preserves creative freedom, and keeps decision-making accountable to the workers who make EA successful."
If and when the deal closes as planned, or rather, in the following months and years, we'll see for ourselves whether layoffs – typical of leveraged buyouts, historically – do hit the company's core or orbiting teams, and whether EA's creative direction actually shifts under its new owners. Unrelatedly, I've just checked my crystal ball, and it says 2026 probably won't be all sunshine and rainbows.
