Gaming giant Electronic Arts bought in unprecedented $55bn deal

Digital Arts (EA), one of many largest gaming firms on the earth, has agreed a deal to promote the corporate for $55bn (£41bn).The consortium of patrons embrace Saudi Arabia’s Public Funding Fund (PIF), Silver Lake and Jared Kushner’s Affinity Companions.EA is understood for making and publishing best-selling video games corresponding to EA FC, previously generally known as Fifa, The Sims and Mass Impact.It’s understood to be the biggest leveraged buyout in historical past – the place a big quantity of the acquisition is financed by borrowing cash.The deal will take EA non-public – which means all of its public shares will likely be bought and it’ll not be traded on a inventory alternate.The acquisition worth places a big 25% premium in the marketplace worth of EA, valuing it at $210 per share. EA boss Andrew Wilson, who will stay in submit, mentioned it was a “highly effective recognition” of the agency’s work.”Along with our companions, we are going to create transformative experiences to encourage generations to come back,” he mentioned.The corporations shopping for EA will contribute $36bn in funds, with the remaining $20bn being financed by loans.It’s a large buy of an organization which has been synonymous with the gaming business for greater than 40 years.In that point, EA has been answerable for a number of the largest recreation collection in historical past. Its soccer titles, now generally known as EA FC, have offered 325 million copies because the first launch in 1993.The Sims has offered greater than 200 million copies, and Want For Pace greater than 150 million.Nevertheless it has additionally been the writer of many different common titles – usually being the accomplice of selection for video games within the Harry Potter and James Bond collection up to now.The acquisition will likely be an enormous gaming feather within the cap of Saudi Arabia, which has been rising its presence within the business lately.In March 2025, the nation’s funding fund paid $3.5bn to buy the gaming division of Niantic – giving it management of the hit cell recreation Pokémon Go.The acquisition turned a part of Scopely Inc – which itself was purchased by PIF subsidiary Savvy Video games Group for $4.9bn in 2023.Saudi Arabia has made waves within the eSports business, internet hosting main tournaments together with the eSports World Cup, and it’ll additionally host 2027’s deliberate Olympic eSports Video games.The nation already has stakes in different huge gaming corporations corresponding to Nintendo and Take-Two Interactive, however the EA buy marks a big extension of its attain.Its PIF has a whole lot of billions in property as a consequence of its oil wealth, and it’s managed by the nation’s prince Mohammed bin Salman, whose authorities has been accused of human rights violations.A 2019 UN report acknowledged “the state of the Kingdom of Saudi Arabia is accountable” for the demise of Jamal Khashoggi, a journalist who was crucial of the nation’s authorities.Saudi Arabia has all the time denied this.