Saudi-led Consortium Completes $55 Billion Acquisition of Electronic Arts

A consortium led by the Public Investment Fund of Saudi Arabia has successfully completed the acquisition of video games maker Electronic Arts for a whopping $55 billion. The deal was backed by private equity firm Silver Lake and Affinity Partners, led by President Donald Trump’s son-in-law Jared Kushner. Following the announcement, EA confirmed that its stock has stopped trading and will be delisted from the Nasdaq, with shareholders receiving $210 in cash per share.

The acquisition marks Saudi Arabia's further expansion into the sports and gaming industry, with PIF emphasizing entertainment and sports as key strategic focus areas. Analysts have expressed concerns over the substantial debt EA has incurred through the deal, raising questions about the future of its intellectual property. PIF reportedly borrowed $20 billion from JPMorgan, the deal’s advisor, in what is believed to be the largest leveraged buyout in history.

Experts foresee EA concentrating on its safest franchises, such as The Sims, Battlefield, and sports titles, to navigate the debt burden, potentially leading to staff reductions, studio closures, and potential IP sell-offs.