For the first time since 1990, Electronic Arts (EA) is a private company. On Tuesday, what was expected became official as the $55 billion sale of EA was completed.
As of August 4, one of the largest game developers in the world is under the control of a group that includes the Saudi Arabia Public Investment Fund, Silver Lake, and Affinity Partners.
A New Era For EA
“This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world’s leading interactive entertainment companies,” said Andrew Wilson, Chairman & CEO of Electronic Arts, via press release. “We’re entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we’ll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day.”
At $55 billion, the sale of EA becomes the largest leveraged buyout in history. Unlike a traditional sale, a leveraged buyout sees the acquiring party use a large amount of debt to complete the transaction. That debt is then placed onto the books of the company. In this case, EA will see $20 billion added to its overall debt.
“Having been a minority investor in the company for more than five years, we have a deep understanding of EA’s unique platform, massive global sports and gaming franchises, and iconic IP,” said Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF in the same release. “Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA’s management team in driving sustained growth and innovation for EA and the industry.”
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Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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The PIF should buy Endeavor next from Silver Lake, YouTube, and Rolling Loud, Qiddiyah should buy Ziff Davis move IGN to Saudi. Savvy said like 5 years ago they’d buy a AAA console game publisher they still have yet to do so are they looking at Embracer? Sega? Koei Tecmo? Bandai Namco? Take2? I say avoid Square Enix no saving that dump. MiSK needs to finally buy Capcom out and expand their anime efforts too buy Kodansha, The Hitotsubashi Group, Tatsunoko, Tezuka, Ishinomori, Dynamic Planning, and Toei. Honestly hope they buy Nintendo in a few years and for sure should buy Gamma Records.