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Electronic Arts Completes $55 Billion Leveraged Buyout to Become a Private Company

Electronic Arts has finalized a $55 billion leveraged buyout, transitioning the video game giant into a private company. The acquisition was led by a consortium including Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners. Shareholders will receive $210 in cash per share as the company is delisted from the Nasdaq. CEO Andrew Wilson announced the move, noting that the new leadership team includes Cam Weber as President and Chief Studios Officer, and David Tinson as President and Chief Operating Officer. The deal is considered the largest leveraged buyout in history, with the PIF borrowing $20 billion from JPMorgan to finalize the transaction. While the acquisition offers EA more freedom from public market pressures, analysts suggest the high debt burden may lead to significant layoffs and cost-cutting measures. Additionally, critics have raised concerns regarding the influence of Saudi Arabia's ownership on creative decisions, particularly regarding Western themes like free speech and LGBTQI+ representation.

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