Saudi-Led US$55bn EA Takeover Closes in the Biggest Buyout in Gaming History

Electronic Arts has completed its US$55bn sale to an investor group led by Saudi Arabia’s Public Investment Fund, taking one of the world’s largest gaming businesses private.

The transaction closed on 4 August following final regulatory approval from the European Union. PIF is joined in the consortium by technology investment firm Silver Lake and Affinity Partners, the investment business founded by Jared Kushner.

EA shareholders receive US$210 per share. The acquisition has been structured with approximately US$20bn of debt financing and is the largest private equity-funded buyout completed to date.

The transaction ends EA’s 36-year history as a publicly traded company. Chief executive Andrew Wilson, who has led the company since 2013, remains in charge under the new ownership

structure.

EA’s portfolio includes EA Sports FC, Madden NFL, NHL, Formula 1, Battlefield and The Sims. Its sports franchises give the group an established position across football, American football, ice hockey and motorsport, supported by licensing agreements with leagues, teams and athletes around the world.

The acquisition significantly expands Saudi Arabia’s exposure to gaming, esports and digital entertainment. PIF already controls Savvy Games Group and has invested across publishers, competitive gaming and the Esports World Cup ecosystem.

EA reported annual revenue of between US$7.4bn and US$7.6bn during recent financial years. Operating privately will give its owners greater flexibility to invest across major franchises, technology and artificial intelligence without the same quarterly reporting pressures.