Saudi Fund Closes Record-Breaking Deal for Electronic Arts

A major deal in the gaming industry has been finalized, with the Public Investment Fund of Saudi Arabia (PIF) leading a consortium that acquired Electronic Arts (EA) for $55 billion. The deal was also financed by private equity firm Silver Lake and Affinity Partners, led by Jared Kushner, President Donald Trump's son-in-law.

The acquisition represents further expansion into the world of sports and gaming for PIF, with its head of international investments, Turqi Alnowaiser, stating that 'entertainment and sports are key areas of strategic focus' for the fund. EA has confirmed that it will cease trading on the Nasdaq and its shareholders will receive $210 in cash per share.

The deal is notable not only due to its massive size but also because PIF is reportedly borrowing $20 billion from JPMorgan, making it the largest leveraged buyout in history. Analysts have expressed concerns about the high level of debt EA will be taking on and how it may impact the company's strategy.