EA Has Been Bought By A Saudi Firm For $55 Billion

Electronic Arts is officially a private company following the completion of its $55 billion acquisition.

The publisher behind EA Sports FC, The Sims, Battlefield, and Apex Legends has been acquired by a three-member investor consortium led by Saudi Arabia’s Public Investment Fund (PIF), alongside Silver Lake and Affinity Partners.

EA’s $55 Billion Acquisition Is Now Complete

EA confirmed the completion of the acquisition in an official announcement on August 4. The deal values the company at approximately $55 billion, making it one of the largest take-private transactions in gaming history.

Under the agreed terms, EA stockholders receive $210 per share in cash. PIF, which already held a stake in the publisher, rolled its existing investment into the newly private company.

The completion also ends EA’s decades-long run as a publicly traded business. Its shares have been delisted from the Nasdaq stock exchange, meaning investors can no longer buy or sell EA stock on the public market.

The three investment groups that now own EA are:

• Public Investment Fund: Saudi Arabia’s sovereign wealth fund and a major investor across games, esports, and other entertainment sectors.
• Silver Lake: A US-based technology investment firm with experience in large-scale private equity deals.
• Affinity Partners: An investment company founded by Jared Kushner.

Andrew Wilson will remain EA’s chairman and CEO following the acquisition. The publisher will also retain its headquarters in Redwood City, California.

“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.” – Andrew Wilson

What Does EA Going Private Mean for Its Games?

According to Bloomberg’s Jason Schreier, mass layoffs are anticipated due to EA inheriting a massive 18 billion-dollar debt.

EA’s annual Ebitda is around $1.5 billion, which should be enough to service the interest payments. But the publisher has told debt investors that it will cut $700 million in annual costs including $170 million in “organizational efficiencies,” per Bloomberg. In other words: mass layoffs,” said Jason Schreier

With huge layoffs incoming, news of studio shutdowns and more IPs like Dragon Age going dormant will be hardly surprising.

The acquisition is complete, but its real effect will only become clear through EA’s next wave of games and how its new owners decide to manage one of the industry’s biggest publishers.