A Saudi Arabia-led investment consortium has completed the US$55 billion acquisition of American video game publisher Electronic Arts (EA), according to official statements and industry reports released on Wednesday.
The deal takes the publisher of major franchises including EA Sports FC, The Sims and Mass Effect private. It is the largest leveraged buyout in corporate history and the second-largest acquisition in the gaming industry, behind Microsoft’s US$69 billion purchase of Activision Blizzard.
Under the agreement, the consortium—led by Saudi Arabia’s Public Investment Fund (PIF) and Affinity Partners—provided US$36 billion in equity financing and secured US$20 billion in debt financing from JPMorgan to complete the transaction.
Affinity Partners, the private equity firm founded by Jared Kushner, son-in-law of US President Donald Trump, is among the investors participating in the acquisition.
The consortium will acquire all publicly traded shares of EA, ending the company’s stock market listing, while Chief Executive Officer Andrew Wilson will remain in his role following the takeover.
Wilson said the new ownership structure would enable EA to “create transformative experiences to inspire generations to come.”
The acquisition has drawn scrutiny from industry analysts and advocacy groups, who have raised concerns about the impact of the transaction’s large debt burden on EA’s future operations, as well as potential implications for creative independence and content moderation.
The Public Investment Fund, which manages assets worth about US$514 billion, has significantly expanded its investments in sports, entertainment and gaming as part of Saudi Arabia’s Vision 2030 strategy to diversify the kingdom’s economy beyond oil.
PIF already holds investments in several major gaming companies, including Nintendo and Capcom, and has expanded its presence in esports, game publishing and international gaming events.
Electronic Arts reported net revenue of US$7.46 billion in its most recent financial year.