Saudi-Backed Group Acquires Electronic Arts in $55 Billion Deal
Electronic Arts (EA), the American gaming giant behind popular titles such as EA FC, formerly known as Fifa, The Sims and Mass Effect, has been sold to a group of buyers including Saudi Arabia's Public Investment Fund (PIF) for $55bn (£41bn).
The investors, which also include Affinity Partners led by President Donald Trump's son-in-law Jared Kushner, will take EA private, meaning its public shares will be purchased and it will no longer be traded on a stock exchange.
This is the largest leveraged buyout in history, with PIF borrowing $20bn from JPMorgan to close the deal. The company will have to pay back this debt, which has sparked concerns about potential cost-cutting measures, including mass layoffs and aggressive monetization.
Industry analysts are speculating that the new ownership could lead to a more hands-on approach, with private equity firms typically being aggressive in their management of companies.