Why private equity acquisitions like the one behind BioWare's closure are so feared
Why private equity acquisitions like the one that just claimed BioWare are so dreaded
PC Gamer updated its overview of how private equity acquisitions work after BioWare's closure and roughly 400 layoffs at EA. It explains how leveraged buyouts put debt on the acquired company and lists asset sales, sale-leaseback deals and management fees as ways value is extracted. It also notes Gamepires announcing layoffs eight months after being acquired by Splash Damage, and that EA is still developing Marvel's Iron Man, the next Star Wars Jedi entry and a Sims project codenamed Project Evergreen.
The piece uses BioWare's closure to explain how leveraged buyouts drain acquired companies, then applies that lens to EA's current situation.
Source: PC Gamer · pcgamer.com