Electronic Arts (EA), the gaming company behind titles like The Sims and Madden NFL, has been acquired by an investment group in what the Wall Street Journal characterizes as the largest leveraged buyout in history. The equity group responsible, who reportedly paid about $10 billion over EA’s market value, includes Saudi Arabia’s Public Investment Fund and Jared Kushner’s Affinity Partners. Silver Lake, an equity fund heavily invested in the Australian Professional [football/soccer] Leagues.
The acquisition is reported to have drawn $55 billion from a diverse investor group, with Kushner reportedly playing a key role in negotiating the deal. EA was valued at roughly $43 billion. EA stockholders will receive $210 per share in cash.
The new owners plan to take the company private, although at present management and corporate headquarters will remain in place, with Andrew Wilson staying on as CEO.
“This is one of the largest and most significant investments ever made in the entertainment industry,” Wilson wrote in a statement on the EA website. “Our new partners bring deep experience across sports, gaming, and entertainment. They are committed with conviction to EA – they believe in our people, our leadership, and the long-term vision we are now building together.”
Given Silver Lake’s stake in Australian football and the Saudi PIF’s heavy investment in sports (they control the LIV, a golf league that is set to merge with the PGA), it’s likely the crown jewels of the EA acquisition are their popular sports sims, including FIFA, Madden, and NBA games.
“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers and IP creators,” Turqi Alnowaiser, deputy governor and head of international investments at PIF, said in a statement. “PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
The Public Investment Fund is overseen by Saudi crown prince Mohammed bin Salman, widely accepted as the man responsible for the murder of journalist Jamal Khashoggi in 2018. Kushner is the son-in-law of U.S. President Donald Trump.
Saudi Arabia’s significant investment in sports and entertainment has been in the news recently, with a number of big-name comedians drawing criticism for their participation in the Riyadh Comedy Festival.
“I was not offered the gig but it should go without saying that there’s not enough money for me to help these depraved, awful people put a ‘fun face’ on their crimes against humanity,” comedian David Cross wrote today, adding, “I am disgusted, and deeply disappointed in this whole gross thing. That people I admire, with unarguable talent, would condone this totalitarian fiefdom for…what, a fourth house? A boat? More sneakers?”
