Daily Tech News Show This is why EA is going private - DTNS 5114
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Sep 29, 2025 The discussion dives into EA's shocking $55B move to go private and the potential implications for its franchises. OpenAI introduces new parental controls aimed at fostering safer interactions for teens. Concerns arise over Tile trackers leaking sensitive information, highlighting serious security risks. Meanwhile, Microsoft integrates GPT-5 into Office, showcasing impressive features despite early accuracy concerns. The hosts also cover DJI's national security scrutiny and benchmark comparisons between Qualcomm and Apple's latest chips. A packed mix of tech updates!
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EA Taken Private With Big Investors
- EA agreed to a $55B leveraged buyout led by Silver Lake, PIF, and Affinity Partners, keeping CEO Andrew Wilson onboard.
- The deal targets closing in Q1 2027 after regulatory review and heavy financing including $20B from JPMorgan.
Private Buyers May Break Up EA
- Leveraged buyouts typically extract value quickly and may sell valuable franchises to repay debt.
- Tom and Robb expect EA could be broken into parts and sold off over several years after the deal closes.
Privatization Lowers Acquisition Friction
- Large buyers like Sony, Microsoft, Apple considered EA but found it too expensive publicly.
- Privatization may let big firms acquire specific franchises with fewer regulatory headaches.