In a landmark deal, shareholders of Electronic Arts (EA), one of the world’s leading video game companies, have approved a $55 billion acquisition by a consortium led by Saudi Arabia’s Public Investment Fund (PIF). The deal values EA shares at $210 each and is set to transform the gaming giant into a privately held company, allowing it to focus on creative development without the pressures of quarterly financial targets.
A New Era for EA
Founded over 40 years ago, EA is known for producing blockbuster gaming franchises such as EA SPORTS FC and Battlefield. This acquisition marks a pivotal moment in EA’s history, aligning with Saudi Arabia’s Vision 2030 initiative, which aims to diversify the Saudi economy by investing in entertainment, technology, and other non-oil industries. The deal underscores the Saudi Public Investment Fund’s growing interest in the interactive entertainment sector, a key area of focus for its diversification strategy.
The acquisition also includes private equity firms Silver Lake and Affinity Partners as part of the consortium. The transaction, initially agreed upon in September, is expected to be finalized by early 2027, subject to regulatory and shareholder approvals.
Financing the Deal
The $55 billion deal is being financed through a combination of equity and debt. The PIF will contribute its existing equity stake in EA, valued at $36 billion, alongside additional capital from Silver Lake and Affinity Partners. The consortium has also secured $20 billion in committed debt financing, primarily from JPMorgan Chase, with $18 billion expected to be utilized upon deal completion.
This acquisition represents one of the largest leveraged buyouts in history, with over 20 banks, including Bank of America, Citigroup, and Morgan Stanley, participating in the financing process.
Focus on Long-Term Innovation
The move to take EA private is aimed at fostering innovation and creativity in game development. By removing the pressure to meet quarterly earnings targets, the company plans to focus on delivering high-quality, immersive gaming experiences. EA’s headquarters will remain in Redwood City, California, with CEO Andrew Wilson continuing to lead the company.
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