EA reportedly considers Studio and IP sales to recoup its takeover costs
EA has reportedly considered selling Bioware and other IP following its takeover
EA was recently acquired by a consortium that includes Saudi Arabia’s Public Investment Fund. The deal is considered to be the largest “leveraged buyout” in history. EA is now a private company, and the nature of the studio’s buyout has saddled the company with $20 billion in debt. EA now needs to earn enough money to repay this debt or dramatically reduce its spending. Now, there are reports that EA may be planning to sell studios and IP, including Bioware.
While EA shareholders made a lot of money through this takeover, the deal and its debt could kill EA over the longer term. Insider Gaming’s Mike Straw has stated that EA will be looking into ways to cut hundreds of millions per year in spending. He also said that people within EA expect large-scale layoffs within the next 6-12 months.
Is Bioware for sale?
There are claims that EA has considered selling BioWare, which is currently developing a new Mass Effect game. There are reports that EA has previously tried to sell the studio following the release of Dragon Age 4, though we cannot verify these claims.
EA may also sell some of its dormant IP to generate some income. As it stands, EA is sitting on a lot of IP that isn’t generating any income for the company. IPs like Need for Speed, Command and Conquer, Ultima, Wing Commander, Dungeon Keeper, Sim City, Medal of Honor, Theme Park, Dead Space, Titanfall – the list goes on and on.
Mike Straw has claimed that studio sales and IP sales have been discussed at “some level” within the company. That doesn’t mean that such a sale will happen. “Everything is in flux right now”, Straw said on Bluesky. Only one thing is certain, and that’s that EA employees are worried about their future.
Honestly, I would be glad to see some studios leave EA and some of the company’s dormant IP return to life under a new studio. If EA isn’t willing to use its IP, they should let someone else use it. They get some money, reduce their debt burden and maybe prevent a few layoffs along the way. Removing some studios from EA could also eliminate concerns that Saudi Arabian influence would influence the content of specific EA franchises, primarily The Sims.
In time, EA could entirely change. Perhaps EA will sell many of its non-core franchises and focus primarily on its lucrative sports catalogue. That’s where most of EA’s money is, after all.
You can join the discussion on EA’s plan to cut costs and generate revenue on the OC3D Forums.
