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[–] 8 points 1 week ago (2 children)

They are in a lof of debt because of the buy out.

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  • [–] 10 points 1 week ago (1 child)

    They're also in a lot of debt from making dog shit for the last 15 years.

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  • [–] 5 points 1 week ago (2 children)

    They've been making dogshit for a lot longer than that.

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  • [–] 4 points 1 week ago

    Kind of yes, but actually no.

    We just see that debt now, its explicit.

    EA ... was subject to a leveraged buy out, that they sought out. They did this... because they needed cash, now.

    What that means is that their internal financials were an absolute shit show... that they had, up untill that point, basically just legally lied about, hid, downplayed.

    They fluffed up their balances and returns and cashflows in ways that are legal to do, but if you actually do due dilligence, you could read the writing on the wall.

    Its basically the same as any other US company that got bought out / sold itself to private equity in the last 10 or 15 years.

    Difference is, EA is so huge, it had to be bought out by essentially a sovereign wealth fund.

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