Chamath @ 00:05:34Inconclusive
marketsaitech
If EA, under its new private ownership, successfully (1) cleans up its operating expense model, (2) adopts next‑generation AI tools, and (3) finds ways to distribute its games outside the Xbox/PlayStation gatekeepers, then Electronic Arts’ equity value will grow into the hundreds of billions of dollars (substantially above the $55B take‑private valuation) over the subsequent years.
If you do those things, this is a multi hundred billion dollar asset. And in that I think it could be just an enormous win.View on YouTube
Explanation
Chamath’s claim is a conditional, long‑term prediction: if the new private owners of EA (1) streamline operating expenses, (2) successfully adopt next‑gen AI tools, and (3) break some dependency on Xbox/PlayStation distribution, then EA could become a “multi‑hundred‑billion‑dollar” asset, far above the ~$55B take‑private valuation.
As of November 30, 2025:
- EA has only recently agreed to a $55B leveraged buyout led by Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners; the deal is described as the largest take‑private/LBO ever. (ft.com)
- The transaction is not yet closed; reports state it is expected to complete in the first half of 2026 / early fiscal 2027, pending shareholder and regulatory approvals. (barrons.com)
- Because the company is only in the process of going private, there is no observable market‑based equity valuation under new ownership, and “the subsequent years” Chamath refers to have not occurred.
Given that (a) the key operational and strategic changes he conditions the prediction on cannot reasonably be evaluated yet, and (b) the multi‑year horizon for reaching “hundreds of billions” in value has not elapsed, there is no way to determine whether this forecast is right or wrong at this time.
Therefore the status of the prediction is inconclusive (too early to tell).