Basically, the company had to pay for its own buyout when private equity firms KKL, Vornado, and Bain bought the company for $6.6 billion, mostly with loans.
Because the company then had to pay off those extreme loans, they were forced to sell off their assets and property, which they leased back from the very private equity firms that now owned them.
The same thing happened more recently with Red Lobster and JoAnn Fabrics.
Yeah, this is the case for most “public to private” company moves, and other types of private equity acquisition deals. They are all just a massive shell game to liquidate a company’s value and transfer it to those private equity companies. Vulture Capitalism
No other kind. Every major gain is just made by eating a corpse you don’t acknowledge-polluting the air or putting plastics in all our blood or slopping us with malevolent ux and llm’s.
Comical to read this when I just saw a $50 billion dollar sale of EA going private being bought by private equity firms, haha.
If EA gets bled dry by private equity, it’ll probably be the biggest company to go down that way ever.
My first thought as well. Of companies to lose to further “investor” shittery, I can’t say I’ll lose much sleep over EA if that turns out to be the case.