🇺🇸 CHAMATH: GAMING IS BIGGER THAN SOCIAL MEDIA - AND EA DEAL COULD BREAK IT WIDE OPEN
"Video games are the anchor of usage across the entire internet.
In many ways, it's much bigger than social networking.
You have distribution gatekeepers trying to raise money and take share, and then you have the original IP owners who have not had a well-funded way of fighting back.
If you take an asset like this private, it helps you find ways of distribution outside the scope of Xbox and PlayStation, so you can take more of your share.
If you do those things, this is a multi-hundred billion dollar asset."
Source: @theallinpod, @chamath
🚨 EA GOES FOR $55B - GAMING’S BIGGEST BUYOUT YET
Electronic Arts just got swallowed in a $55 billion leveraged buyout led by Saudi Arabia’s Public Investment Fund, Silver Lake, and Jared Kushner’s Affinity Partners.
That’s the biggest deal gaming’s ever seen - and it’s not just about video games.
The prize? EA’s IP goldmine: Battlefield, Apex Legends, The Sims.
In an era where gaming growth is cooling post-pandemic, IP isn’t just for consoles - it’s Hollywood’s new lifeblood.
Think The Last of Us on HBO, Fallout on Amazon, Mario on the big screen. EA already has a Sims movie lined up with MGM.
For PIF, this is the latest move in a cultural power play - they’ve poured billions into Nintendo, Take-Two, anime studios, even cinema chains.
The bet: own the franchises that define global pop culture.
But here’s the risk: high-dollar IP hoards can implode if the hits don’t land.
Just ask Embracer Group, whose acquisition binge ended in a split after bad reviews tanked its strategy.
EA is a content farm for the next Marvel-ization of gaming IP. And Riyadh just bought the script.
Source:Â Reuters
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