Prof G Markets EA Goes Private for $55B in Biggest LBO Ever, U.S. TikTok Valued at $14B & GDP Revised Upward
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Sep 30, 2025 
Michael Pachter, a leading video-game industry analyst from Wedbush Securities, explores the $55 billion deal to take Electronic Arts private, discussing Saudi Arabia's strategic interest in gaming and potential growth via mobile platforms. Mark Zandi, Chief Economist at Moody’s Analytics, analyzes the upward revision of GDP, driven largely by the wealthy, and highlights concerns about recession risks due to stock market dynamics. The discussion also touches on the dubious $14 billion valuation of TikTok in the U.S. and the legal ramifications surrounding it.
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Gaming Growth Is Mobile And Cloud
- The growth in gaming is concentrated in mobile and free-to-play, not traditional console/PC game sales.
- Public companies like EA underperform because they miss mobile and creator-driven cloud opportunities like Roblox.
Games Are Attention, Not Ad Dollars
- Ed Elson frames video game companies as dominant attention platforms that under-monetize that attention.
- He suggests private equity can now squeeze more profit by better monetizing attention, likely at gamers' expense.
TikTok US Valued Far Below Market
- The White House framework values U.S. TikTok at $14B, roughly one-time revenue, far below comparable social platforms.
- That price suggests political, not market, forces shaped the valuation and deal structure.
