Saudi-Led Investor Group Completes $55 Billion Electronic Arts Buyout
A consortium led by Saudi Arabia’s Public Investment Fund has completed its $55 billion acquisition of Electronic Arts after receiving final regulatory clearance.
In short
- A consortium led by Saudi Arabia’s Public Investment Fund has completed its $55 billion acquisition of Electronic Arts after receiving final regulatory clearance.
A consortium led by Saudi Arabia’s Public Investment Fund has completed its $55 billion acquisition of Electronic Arts, taking the video-game publisher private after final regulatory approval.
Electronic Arts announced completion of the transaction on Tuesday evening, August 4. The deal received its final regulatory clearance from the European Union days earlier, according to the Guardian.
The buyer group also includes Silver Lake Partners and Affinity Partners, the investment firm run by Jared Kushner. The transaction ends EA’s 36 years as a publicly traded company and ranks among the largest leveraged buyouts on record.
EA, founded in 1982, publishes franchises including EA Sports FC, Madden NFL, The Sims and Battlefield. Andrew Wilson has served as chief executive since 2013.
The company’s annual revenue has remained between roughly $7.4 billion and $7.6 billion in recent years while competition from mobile and online game publishers has intensified. EA reported weaker-than-expected quarterly revenue on August 3, attributing the result to lower engagement with its latest Battlefield release.
Going private will end EA’s requirement to publish quarterly financial reports. The source report noted that no workforce reductions had been announced in connection with the acquisition.
