Key facts
- Electronic Arts (EA) has been acquired for $55 billion by a consortium including Saudi Arabia's Public Investment Fund (PIF) and Affinity Partners.
- The gaming giant will be taken private, ending its 36-year history as a publicly traded company.
- The deal is structured as a leveraged buyout, with PIF borrowing $20 billion from JPMorgan.
- Concerns have been raised about potential censorship of inclusive themes in EA's games due to Saudi Arabia's human rights record.
- Saudi Arabia views the acquisition as a strategic move to increase its influence in sports and gaming.
Electronic Arts (EA), the maker of popular video games such as The Sims, Madden NFL, and Battlefield, has been acquired for $55 billion by a consortium including Saudi Arabia's Public Investment Fund (PIF) and Affinity Partners. The deal, which received final regulatory approval from the EU, marks one of the largest buyouts on record and will take EA private, ending its 36-year history as a publicly traded company.
Affinity Partners is led by Jared Kushner, who expressed excitement about supporting EA's continued growth and reach. The acquisition is seen as part of Saudi Arabia's broader strategy of investing in gaming and esports, aligning with Crown Prince Mohammed bin Salman's interest in the sector. EA, founded by William "Trip" Hawkins in 1982 and led by CEO Andrew Wilson since 2013, has faced stagnating revenues in recent years, with competition intensifying from mobile game makers and rivals like Activision Blizzard being acquired by Microsoft.
As a private company, EA will be freed from quarterly financial reporting scrutiny. However, such takeovers often lead to job cuts and cost-cutting measures, though no specific plans have been announced for EA. The company recently reported lower-than-expected revenues for its latest Battlefield game. Concerns have been raised by fans and analysts regarding potential censorship of inclusive themes in EA's games, given Saudi Arabia's human rights record and the PIF's majority ownership.