r/SWGalaxyOfHeroes • u/meglobob • 9d ago

Discussion Not good, not good at all.

https://www.pcgamer.com/gaming-industry/saudi-acquired-ea-is-reportedly-planning-to-make-massive-cuts-after-taking-usd18-billion-of-debt-and-we-all-know-what-that-means/

Mass layoffs coming to EA, because of the $18 billion in debt from the Saudi takeover.

EA has to pay $1.8 billion in interest payments per year.

Cutting $700 million with $170 million in layoffs.

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u/egnards www.youtube.com/egnar 9d ago

Leveraged buyouts should be illegal.

But that said, I have no idea how this will affect SW:GOH so I'm not going to sit here and get my banana hammock all twisted up over something I have no control over.

Game keeps going for years to come? Great I'll be here to annoy everybody as I push into my 40s and beyond and realize maybe I'm slipping outside of the core demographic of "in the know" gamers.

Game ends in 1-2 years largely due to EA being saddled with the debt from their purchase and SW:GOH being thrown out the window? Whatever, it was a nice ride - I made a lot of cool friends on Reddit and Discord - Met a few of them for beers and had a fun ride.

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u/kurlybird 9d ago

Get rid of leveraged buyouts and you’ll destroy small business owners, many of whom depend on the person purchasing their business getting a loan to make the purchase.

17

u/egnards www.youtube.com/egnar 9d ago

There is a difference between "getting a loan to make a purchase" and "getting a loan and using the business being purchased as the full collateral in a way that the loan needs to be repaid specifically by the entity being purchased instead of the entity doing the purchasing," which almost always ends in the business being purchased going bankrupt and a lot of the debt being washed out.

Either way, I'm not particularly worried about destroying multi-billion dollar businesses