Electronic Arts says acquisition will not result in layoffs, according to new SEC filing
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Key points
- EA claims that there will be no “immediate changes” to the team as a result of the acquisition.
- The company also said that it will retain creative control after the acquisition.
- EA expects the transaction to close in six to nine months.
In a new US Securities and Exchange Commission filing regarding Electronic Arts being acquired by the Public Investment Fund of Saudi Arabia, Silver Lake and Affinity Partners, the company reassured its employees that “there will be no immediate changes to your job, team, or daily work, as a result of this transaction.”
In late September, Bloomberg’s Jason Schreier expressed concern when rumors of Electronic Arts being acquired surfaced. According to his report, since EA still has $20 billion in debt that will be put on the books when it gets privately owned, the company might do a significant amount of cost-cutting to cover the debt, including layoffs.
Aside from claiming that there will be no layoffs resulting from the acquisition, Electronic Arts also confirmed that the company will “maintain creative control” of the games, essentially saying that it will not be influenced by those that acquired it.
The company also assured its employees that it is not in financial trouble, saying that it is in a strong financial position. Electronic Arts also said that the partnership will give the company the “ability to move faster and unlock new opportunities on a global stage.”
Electronic Arts’ acquisition is expected to close in the next six to nine months.
Andrew Wilson will remain the company’s CEO, and there will be no changes to the executive team, according to the company.
