Electronic Arts has officially been acquired for $55 billion, marking the second-largest deal in video game history. The company is now private, with its ownership transferred to a consortium comprising Saudi Arabia's Public Investment Fund (PIF), Silver Lake Partners, and Affinity Partners, a private equity firm led by Jared Kushner.
The transaction was announced following approvals from EA shareholders and regulatory bodies, having been initially revealed last September. This acquisition signifies a major shift for the publisher, known for franchises such as Madden NFL and FIFA.
According to statements from the new ownership group, the consortium intends to support EA's continued growth and innovation. Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, highlighted entertainment and sports as strategic growth areas for the fund, citing a deep understanding of EA's platform and intellectual property developed over five years of minority investment. Egon Durban, CEO and Managing Partner of Silver Lake, noted EA's ability to fuel imagination and human connection through its creative talent and expressed a commitment to investing in EA's expansion, including the potential of artificial intelligence in game development and player experience.
Jared Kushner, CEO of Affinity Partners, emphasized EA's role in creating stories, characters, and communities that resonate globally. He expressed enthusiasm for supporting the company as it reaches new audiences and enhances player connection.
While structured as a consortium, reports indicate that Saudi Arabia, through the PIF, will hold a substantial majority stake of 93 percent in EA upon the deal's closure. The PIF, Saudi Arabia's sovereign wealth fund managed by Crown Prince Mohammed bin Salman, possesses an estimated $900 billion in assets and has been instrumental in funding national economic development through various global investments. The fund has previously engaged with the gaming sector through acquisitions of companies like Scopely and Niantic, as well as investments in entities such as Nintendo and Take-Two Interactive.