In an internal message to all employees, freshly released by the US Securities and Exchange Commission, EA tells staff worried about layoffs that there won't be "immediate" changes to any jobs or teams as a result of the deal.
Spotted by reporter Stephen Totilo, the SEC filing covers "an employee FAQ made available" to all EA staff on September 29, hot on the heels of the seal on the deal which will see EA go private with a $55 billion buyout that includes $20 billion in debt assuming it closes as planned. In the FAQ, EA leadership says it expects the deal "to close in the next six to nine months."
"Will private ownership lead to layoffs?" one heading asks. "There will be no immediate changes to your job, team, or daily work, as a result of this transaction," EA assures. "Our focus is on driving innovation, and expanding our global reach, all of which require world class teams, who are excited to shape the future of entertainment."
It's unclear if EA means there won't be "immediate changes" right now, in six to nine months, or in the next year or two. But EA employees have already expressed concerns that "layoffs usually follow those type of acquisitions."
They aren't the only ones. That $20 billion debt must be serviced, consolidation historically results in layoffs, and EA may yet be pared down as its new overseers seek to maximize returns.
Veteran industry analyst Serkan Toto of Kantan Games tells GamesRadar+ that concerns of layoffs or closed studios at EA "are not only concerns, but at least in my eyes, actual events that we will see unfold going forward.
"I do not expect to see the new owners take radical action 'next week', but starting in the very near future," he says.
David Cole, CEO of market research and consulting firm DFC Intelligence, believes "closing studios and layoffs are possible but I think it is more likely that EA will try its best to sell off smaller studios and franchises to maximize value and use it to pay down debt.
"This could even include selling off individual franchises," he tells GamesRadar+. "DFC has an upcoming report looking at the value of specific legacy franchises (ex. SimCity, Dragon Age, Plants vs Zombies, Bejeweled, Command and Conquer and many more). There could be significant value in these franchises but they are not immediate core earners for EA. However, they could be attractive to many potential buyers."
In its FAQ, EA also addresses fears that this deal will lead to changes in the company's culture. It does not directly address concerns that significant investment and future oversight from Saudi Arabia's Private Investment Fund, flanked by private equity firm Silver Lake and Jared Kushner's investment firm Affinity Partners on the buyer list, could lead to cultural changes or changes to EA games made to suit Saudi Arabia's standards.
"Will our culture change as a result of this deal?" EA writes.
"Our mission, values, and commitment to players and fans around the world remain unchanged," the response reads. "We will continue to be guided by our cultural values of creativity, pioneering, passion, determination, learning, and teamwork. The Consortium is supportive of and committed to investing in our exceptional employees and our strong culture." ("The Consortium" being the buyers.)
While there is a perception that similar buyouts are often sought or accepted by struggling companies, EA stresses that it is "in a strong financial position" and the deal simply "gives us the ability to move faster and unlock new opportunities on a global stage."
Andrew Wilson "will remain CEO, and there are no changes to the executive team as a result of this transaction."
"Why did the Board accept this offer to take EA private?" the first item on the FAQ reads. "What is their responsibility to stockholders?"
The response is unsurprisingly stakeholder-facing: "The Board carefully evaluated this opportunity and concluded it delivers compelling value for stockholders and is in the best interests of all EA stakeholders."
EA employees with vested (or unvested) equity in the company "will receive the deal premium stock price of $210 in cash for each vested EA share" (or cash award equivalent), another section clarifies.
EA also commits to maintaining current pay and benefits, but adds: "We will adjust our ESPP program in anticipation of closing. Over the coming months, we will be working with the Consortium to review our programs and adjust if necessary, to support this next phase of EA’s future."
EA's bonus program "will continue as planned, and bonus payments are expected to be made in June 2026."
The company makes the point that if "asked to comment on this by a member of the media or an investor," employees "please do not comment or speak on behalf of EA" and instead refer inquiries to corporate.
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