Saudi-led group completes $55bn purchase of gaming giant EA
Summary
A group led by Saudi Arabia's Public Investment Fund (PIF) has completed the $55 billion purchase of Electronic Arts (EA), a major video game company known for titles like EA FC and The Sims. The deal means EA will become a private company and is one of the largest buyouts in history, involving significant borrowing.Key Facts
- The Saudi-led group, including PIF and Jared Kushner's Affinity Partners, bought EA for $55 billion.
- EA makes popular games such as EA FC (formerly Fifa), The Sims, and Mass Effect.
- EA will no longer be publicly traded after the deal as it becomes a private company.
- The purchase is the second-largest gaming industry acquisition after Microsoft's $69 billion purchase of Activision Blizzard.
- PIF borrowed $20 billion from JPMorgan to help finance the deal, adding debt that EA will need to repay.
- There are concerns about potential changes in EA’s management and creative decisions due to the new ownership.
- Some gamers and advocacy groups worry that the Saudi ownership could lead to censorship around topics like LGBTQ+ representation.
- EA’s chief executive Andrew Wilson will remain in his position and expressed optimism about EA's future under the new ownership.
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