Electronic Arts Completes $55 Billion Go-Private Sale to New Ownership Group
The deal, backed by Saudi Arabia's PIF and investment firms Silver Lake and Affinity Partners, marks the largest private equity-funded buyout.
Video game publisher Electronic Arts (EA) has officially transitioned to private ownership following the completion of a $55 billion sale to a consortium including Saudi Arabia's Public Investment Fund (PIF), investment firm Silver Lake Partners, and Affinity Partners, led by Jared Kushner.
The acquisition, announced Tuesday, is the largest private equity-funded buyout in history. EA, known for popular titles such as "Battlefield" and "The Sims," is now under new ownership after its stock ceased trading on the public market. EA stockholders will receive $210 in cash per share.
In a statement, EA CEO Andrew Wilson expressed enthusiasm for the future, stating that the company and its new owners plan to "invest boldly, accelerate innovation, and build the next generation of games and experiences." Turqi Alnowaiser, deputy governor and head of international investments at PIF, indicated a commitment to "invest heavily in EA's growth," including the integration of artificial intelligence into game development.
Analysts suggest that private ownership could provide EA with greater freedom to develop and distribute games without the immediate pressures of public market scrutiny. However, the deal's significant debt financing, amounting to $20 billion, has raised concerns about potential layoffs and cost-cutting measures.
Scrutiny Over New Ownership
The involvement of Saudi Arabia's PIF and Jared Kushner's Affinity Partners has drawn criticism. Campaign group #BlockTheEADeal has voiced concerns about the potential misuse of data by a foreign sovereign entity, particularly with the increasing use of AI in the creative sector, citing significant international security risks. Jared Kushner, in a statement, highlighted EA's success in creating "stories, characters, and communities" and expressed excitement about supporting the company's continued growth.
Organizations such as Amnesty International and Human Rights Watch have previously criticized Saudi Arabia's investments in sports and esports, accusing the nation of "sportswashing" to divert attention from its human rights record.
PIF has been steadily increasing its investments in the gaming industry. Beyond its stake in EA, the fund is also a minority investor in Nintendo and holds significant stakes in esports platforms like ESL FACEIT. EA's sports titles, including "Madden NFL" and "EA Sports FC" (formerly FIFA), will now operate under this new ownership structure.