Saudi fund and Kushner-backed group complete $55 billion acquisition of Electronic Arts
A consortium led by Saudi Arabia's Public Investment Fund, together with Silver Lake and Jared Kushner's Affinity Partners, finalized a $55 billion deal to buy video-game publisher Electronic Arts, resulting in the company’s delisting from Nasdaq.
A consortium headed by Saudi Arabia's Public Investment Fund (PIF) announced the completion of a $55 billion acquisition of video-game developer Electronic Arts (EA). The transaction was financed alongside private-equity firm Silver Lake and Affinity Partners, the investment vehicle run by Jared Kushner. EA confirmed that its shares have stopped trading and will be removed from the Nasdaq, with shareholders receiving $210 in cash per share.
PIF’s head of international investments, Turqi Alnowaiser, said the fund views entertainment and sports as strategic priorities. The deal is being funded in part by a $20 billion loan arranged by JPMorgan, making it one of the largest leveraged buyouts on record.
Industry analysts noted that the substantial debt load could lead EA to focus on its most profitable franchises, such as The Sims, Battlefield and its sports titles, rather than pursuing new intellectual property. Michael Futter, founder of F-Squared, told CNBC that the debt is unlikely to change the company’s overall strategy but may cause leadership to concentrate on high-revenue games.
The acquisition marks a further expansion of Saudi investment into the global gaming and sports sectors.