Electronic Arts taken private as $55bn Saudi-led acquisition is finalized

Less than a year ago, an investor group led by Saudi Arabia’s Public Investment Fund (PIF) announced plans to acquire video game publisher Electronic Arts (EA) for a staggering $55 billion. EA is responsible for a huge number of fan-favorite series, including EA Sports FC, The Sims, Battlefield, and Mass Effect, and their future is now up in the air under the new owners.

Despite the short timeframe, the deal has officially closed already after gaining approval from all regulators. Andrew Wilson will still keep his position as EA CEO as well.

"This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies," said Andrew Wilson, Chairman and CEO of Electronic Arts, in a statement today. "We're entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we'll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day."

The move has given the PIF 93.4% of EA. The firms Silver Lake (5.5%) and Affinity Partners (1.1%) own the rest of the company. It also saw EA stockholders receiving $210 (a 25% premium) for each stock they owned as of the deal's closing.

“EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people,” adds Jared Kushner, Chief Executive Officer of Affinity Partners. “We're excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.”

While it's not the biggest ever acquisition deal (which is a record held by Microsoft), at $55 billion, this is now the biggest leveraged buyout in history and has also managed to put EA in a huge amount of debt.

Being a private company, but now under new owners with visions of their own, it's unclear what sort of direction EA will go from here. Even if drastic changes are planned for its games and studios, we probably won't see those take effect for quite some time.