Video game giant Electronic Arts closes $55 billion go-private sale of its business

Video game giant Electronic Arts (EA) has officially been acquired for $55 billion by a consortium including Saudi Arabia's Public Investment Fund (PIF), Silver Lake Partners, and Affinity Partners, led by Jared Kushner. This transaction marks the largest private equity-funded buyout to date. EA CEO Andrew Wilson stated the new ownership will enable bold investments and innovation in future game development. PIF, which already held a minority stake, pledged significant investment in EA's growth, including AI in game development. While some analysts suggest going private offers EA more creative freedom, concerns have been raised by critics regarding potential layoffs due to the deal's debt financing and the implications of foreign ownership, particularly from Saudi Arabia, with organizations like Amnesty International and Human Rights Watch expressing criticism of the nation's investments. EA stockholders will receive $210 in cash per share, and the company's stock is no longer publicly traded.

Video game maker Electronic Arts (EA), known for titles like The Sims and Madden NFL, has been acquired for $55 billion by Saudi Arabia's Public Investment Fund (PIF) and a group of investors including Affinity Partners, run by Jared Kushner, and Silver Lake Partners. The deal, which marks one of the largest buyouts on record, was finalized after receiving the necessary EU regulatory approval. This acquisition takes EA private, ending its 36-year history as a public company. The investors expressed excitement about supporting EA's growth and reaching new audiences. While EA's revenues have recently stagnated amidst increased competition, becoming a private entity may reduce financial reporting scrutiny.