The new owners promise that they will not start by cutting staff, but how many times have we seen this promise broken in recent years?
Following Insider Gaming’s report that BioWare employees are concerned about expected layoffs due to Electronic Arts’ $55 billion acquisition, the company published an FAQ on its website. According to the US Securities and Exchange Commission (SEC), the FAQ indicates that there is no cause for concern, at least for now. Of course, this does not guarantee that there won’t be layoffs later. After all, Microsoft waited a while after acquiring Activision Blizzard before carrying out mass layoffs. In the FAQ, the company explains to its employees why the acquisition will benefit Electronic Arts’ overall future strategy. The publisher also claims that it is financially strong and that the deal opens up new opportunities.
“There will be no immediate changes to your job, team, or daily work as a result of this transaction. Our focus is on driving innovation and expanding our global reach, both of which require world-class teams who are excited to shape the future of entertainment. As a public company, Electronic Arts operates within the framework of public market expectations. However, being a private company allows Electronic Arts to adopt a longer-term investment horizon and pursue bold strategies with greater latitude, free from the constraints of quarterly public market response.
This partnership enables us to move faster and unlock new opportunities on a global scale. With a longer investment horizon and the same discipline, focus, and operational excellence that have fueled our success, we will have greater creative and operational flexibility to drive innovation and build the next generation of entertainment experiences. We will continue to take bold creative risks and invest in our greatest growth opportunities to serve our global communities of fans and players. Electronic Arts is in a strong financial position. This partnership gives us the ability to move faster and unlock new opportunities on a global stage,” the publisher wrote.
Financially strong? That’s a joke! We know the publisher actually has a lot of debt, including the $20 billion that partially financed this acquisition. What are we talking about?
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