Investors in the $55 billion leveraged buyout of Electronic Arts are betting that AI will significantly reduce the company's operating costs, enabling them to manage a large debt load.
"The deal, valued at $55 billion dollars, is the biggest leveraged buyout in history... The deal includes twenty billion dollars in debt and is described by the FT as “a huge bet that AI can significantly cut the companies operating costs, allowing the equity investors to manage a large debt load on a company that historically carried limited net debt.”"
