Electronic Arts becomes private company in $55 billion deal
Video game publisher Electronic Arts (EA) has officially transitioned to private ownership. The $55 billion deal was completed with an investor group led by Saudi Arabia's Public Investment Fund (PIF).
Electronic Arts (EA) is now a private company, following the successful closure of a $55 billion acquisition deal. The transaction, initially announced last September, was led by an investor group comprising Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
The Public Investment Fund is reportedly set to hold a 93.4 percent stake in the newly private entity. The deal notably includes $20 billion in debt financing, marking it as the largest leveraged buyout in history.
This substantial debt financing may necessitate significant operational adjustments at EA to ensure profitability and justify the investment. The company has recently concentrated on its major franchise titles, including the Battlefield series and its portfolio of sports games, such as Madden NFL.