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Saudi PIF and Kushner's Affinity finalize $55 billion EA Sports deal
CNBC • • business
Key Points:
- A consortium led by Saudi Arabia's Public Investment Fund (PIF) has completed a $55 billion acquisition of video game maker Electronic Arts (EA), with financing from Silver Lake and Affinity Partners.
- EA's stock has ceased trading and will be delisted from Nasdaq, with shareholders receiving $210 in cash per share.
- The acquisition marks further Saudi expansion into sports and gaming, with PIF emphasizing entertainment and sports as strategic focus areas.
- Analysts have raised concerns about EA's high debt load from the deal, predicting a focus on established franchises like The Sims and Battlefield, potentially limiting new intellectual property development.
- PIF reportedly borrowed $20 billion from JPMorgan to complete the deal, making it one of the largest leveraged buyouts in history, with potential impacts including layoffs, studio closures, and IP sales.
