{"id":176091,"date":"2025-09-28T20:17:09","date_gmt":"2025-09-28T20:17:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/176091\/"},"modified":"2025-09-28T20:17:09","modified_gmt":"2025-09-28T20:17:09","slug":"do-ea-buyout-talks-hint-at-bigger-industry-troubles","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/176091\/","title":{"rendered":"Do EA buyout talks hint at bigger industry troubles?"},"content":{"rendered":"<p id=\"speakable-summary\" class=\"wp-block-paragraph\">Why is Electronic Arts, one of the biggest names in the video game business, <a href=\"https:\/\/techcrunch.com\/2025\/09\/26\/electronic-arts-will-reportedly-be-acquired-for-50b\/\" rel=\"nofollow noopener\" target=\"_blank\">reportedly in talks to go private<\/a>?<\/p>\n<p class=\"wp-block-paragraph\"><a rel=\"nofollow noopener\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-09-28\/ea-buyout-talk-highlights-video-game-struggles-as-growth-slows\" target=\"_blank\">Bloomberg\u2019s Jason Schreier notes<\/a> that video game companies are moving towards consolidation and that the deal could reflect EA executives\u2019 broader concerns over the future of the industry. Following a period of rapid growth in the 2010s and during the pandemic, Schreier said gamers in recent years have \u201ctended to stick with old favorites rather than purchasing new titles.\u201d<\/p>\n<p class=\"wp-block-paragraph\">This seems to be reflected in EA\u2019s fiscal year 2025, with 75% of revenue coming from live services rather than new purchases. In fact, analyst and Spilt Milk Studios co-founder Nicholas Lovell told Schreier, \u201cWe\u2019re moving away from an era of breaking new ideas to people settling into the same games, spending money over and over again.\u201d<\/p>\n<p class=\"wp-block-paragraph\">So Lovell suggested that EA executives might see the reported $50 billion price tag as the company\u2019s \u201cpeak valuation,\u201d as the industry enters a period where profits continue rising but valuations start to fall.<\/p>\n","protected":false},"excerpt":{"rendered":"Why is Electronic Arts, one of the biggest names in the video game business, reportedly in talks to&hellip;\n","protected":false},"author":2,"featured_media":176092,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,9617],"class_list":["post-176091","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-electronic-arts"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/176091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=176091"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/176091\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/176092"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=176091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=176091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=176091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}