Inside The $55B EA-Saudi Deal: Why It's Not A Typical LBO (with Chris Petrovic & Matthew Kanterman) GameMakers podcast

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Inside the $55B EA-Saudi Deal: Why It's Not a Typical LBO (with Chris Petrovic & Matthew Kanterman)

1d ago 59:56

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Saudi Arabia's Public Investment Fund just closed the largest gaming acquisition in history—$55 billion for Electronic Arts. But this isn't the typical private equity playbook.

In this episode, host Joseph Kim sits down with two M&A experts who break down what's really happening:- Chris Petrovic - Board Chairman & CBO at FunPlus, former President of Publishing at Zynga where he orchestrated their transformative acquisition strategy- Matthew Kanterman, CFA - Gaming industry analyst specializing in M&A and financial analysis

We uncover the hidden truths behind the deal:→ Why EA's "operational bloat" narrative is based on an accounting myth→ The real reason EA chose to sell now (hostile takeovers? portfolio pressure?)→ Why Silver Lake's involvement is primarily "for optics"→ What "patient capital" means for EA's studios and the broader gaming industry→ The mobile strategy question: Will EA and Scopely actually integrate?→ Growth opportunities in sports, Asia, and transmedia→ Who really controls gaming's attention economy now

This isn't about short-term cost-cutting. It's about sovereign wealth rewriting the rules of gaming M&A—and what that means for developers, studios, and the industry's future.

Key Takeaways:- At 17-18x forward EBITDA, EA sold at a discount to Activision's 20x—why?- With Take-Two now the only major independent US publisher, what happens to exit opportunities?- EA's conservative accounting makes them look less efficient than they actually are- This deal is measured in decades, not the typical 5-7 year PE timeline

📬 Subscribe to Gamemakers Newsletter:https://www.gamemakers.com/🔗 Connect with our guests:Matthew Kanterman: linkedin.com/in/matthew-kanterman-cfa-b6345133Chris Petrovic: linkedin.com/in/chrispetrovic

🎧 More episodes: https://open.spotify.com/show/4FdVLkx3msRFsqsEVA1vp0?si=b5192182dc6b4e52

#gaming #mergers #acquisitions #ea #saudiarabia #gamedev #podcast

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