Squawk on the Street EA's $55B Deal to Go Private, Walmart CEO's AI Warning, CEO Changes 9/29/25
Sep 29, 2025
The $55 billion buyout of Electronic Arts by a consortium raises questions about its future in gaming and media. Walmart's CEO warns that AI will transform every job, stressing the need for strategic workforce planning. A shakeup in C-suite roles at several companies includes new leadership at CSX, Barrick Mining, and Comcast. President Trump's threat of 100% tariffs on foreign films adds another layer to market discussions. The implications of AI on infrastructure and competition, especially from Huawei, also capture attention.
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Saudi-Led $55B Takeover Of EA
- The $55 billion buyout makes EA the largest leveraged buyout ever and is driven mainly by Saudi PIF's massive $36 billion equity commitment.
- The deal highlights sovereign wealth funds shifting into big consumer tech and entertainment assets for diversification.
Consortium Combines PE, Political, And Sovereign Capital
- The EA deal consortium includes Silver Lake and Jared Kushner's Affinity Partners alongside PIF, showing private equity and political-connected investors teaming with sovereign capital.
- Large LBOs carry historical risks, but buyers value media/gaming IP for repeatable content and cross-media opportunities.
High Multiple Reflects Franchise Scarcity
- EA's purchase price values the company at about 23x LTM EBITDA, showing strong scarcity value for major gaming franchises.
- Hosts note studios' recurring revenue and IP make gaming assets highly prized for sequels, films, and longer monetization arcs.
