Mass layoffs may be in EA’s near future after leveraged buyout raises company debt by $18 billion

Polygon.com – NewsPrivate investors, including Saudi Arabia’s Public Investment Fund, private equity fund Silver Lake, and Affinity Partners completed a leveraged buyout of Electronic Arts, which means the company’s debt has significantly increased. EA will take on $18 billion in debt, resulting in about $1.8 billion of interest to be paid annually. In order to make interest payments and ensure profit, serious budget cuts will have to be made. Unfortunately, this usually means employee layoffs. Read More