Bloomberg Intelligence EA Agrees to $55 Billion Sale in Largest Leveraged Buyout on Record
Sep 29, 2025
Brian Egger, Senior Gaming and Lodging Analyst at Bloomberg Intelligence, dives into Carnival's impressive earnings report, highlighting consistent forward bookings and an optimistic outlook for the cruise industry. He contrasts Carnival's cautious capital strategy with competitors like Royal Caribbean, showcasing the unique positioning and market segmentation within the cruise sector. The discussion also touches on the overall growth trajectory of the industry and how evolving customer economics are reshaping competitive dynamics.
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Premium Reflects EA's Strong Franchise Catalysts
- EA's $55B LBO price represented a 20–30% premium to its pre-announcement market cap and reflects strong underlying franchise value.
- Nathan Nadeau highlights upcoming Battlefield and EA Sports FC as catalysts likely to drive earnings beats.
Recurring Franchises Drive Private-Equity Logic
- Private buyers value EA for recurring-revenue franchises like EA Sports FC, Madden, The Sims and Battlefield.
- High Western development costs limit cadence, making cost-efficient moves attractive to buyers seeking stable profits.
West/East Cost Gap Limits Content Cadence
- Development costs in Western markets are much higher than in Eastern markets, constraining frequent content updates.
- This cost gap helps eastern developers sustain faster content cadences and pressures Western publishers' margins.