A consortium led by Saudi Arabia’s Public Investment Fund has successfully completed a $55 billion acquisition of video game developer Electronic Arts. The transaction also involved participation from private equity firm Silver Lake and Affinity Partners, the investment company headed by Jared Kushner. Shareholders of the gaming company will receive $210 per share in cash as part of the agreement.
The completion of the deal marks EA’s departure from public markets, with the company’s stock ceasing trading and facing delisting from the Nasdaq exchange. The acquisition represents an expansion of Saudi Arabia’s strategic interests in the entertainment and gaming sectors, according to statements from the Public Investment Fund’s leadership team.
Industry analysts have raised concerns about the financial implications of the transaction, noting that the deal carries a substantial debt load. The Public Investment Fund is reportedly borrowing $20 billion from JPMorgan to finance the acquisition, potentially making it the largest leveraged buyout in history. Some experts suggest the heavy financial burden may force EA to focus its development efforts on established franchises rather than pursuing new intellectual property ventures.
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