In brief
Electronic Arts (EA), known for popular franchises like FIFA and The Sims, has been acquired by a consortium including Saudi Arabia’s Public Investment Fund, in what marks the largest leveraged buyout in history. The deal, valued at $55 billion, will take EA private and signifies a continued push by Saudi Arabia to expand its influence in the gaming sector.
Electronic Arts (EA), one of the biggest gaming companies in the world, has agreed a deal to sell the company for $55 billion (£41 billion).
The consortium of buyers include Saudi Arabia's Public Investment Fund (PIF), Silver Lake and Jared Kushner's Affinity Partners.
EA is known for making and publishing best-selling games such as EA FC, formerly known as FIFA, The Sims and Mass Effect.
It is understood to be the largest leveraged buyout in history - where a significant amount of the purchase is financed by borrowing money.
The deal will take EA private - meaning all of its public shares will be purchased and it will no longer be traded on a stock exchange.
The purchase price puts a significant 25% premium on the market value of EA, valuing it at $210 per share.
It is the second most valuable gaming purchase in history, following Microsoft's $69 billion deal to buy Call of Duty publisher Activision Blizzard - which went through after significant battles with global regulators.
EA boss Andrew Wilson, who will remain in post, described the deal as a 'powerful recognition' of the firm's work.
The transaction highlights increased activity and investment in the gaming sector by Saudi Arabia, which has made several high-profile acquisitions in recent years.
Industry experts express concerns about the implications of such large debt on EA's future, particularly regarding its investment capabilities for new games.
