LONDON: Saudi Arabia’s Public Investment Fund is leading a consortium of investors, including Jared Kushner’s Affinity Partners and private equity firm Silver Lake, to acquire Electronic Arts, the popular video game developer, in an unprecedented $55 billion deal.
The buyout will involve a combination of about $36 billion in cash, equity already held by the PIF, and about $20 billion in debt, as announced on Monday, to be financed by JPMorgan.
The deal will give Saudi Arabia a larger presence in the esports industry, according to analysts. The Kingdom has hosted the Esports World Cup in Riyadh, and the gaming and esports sectors are significant contributors to the PIF’s efforts to diversify the Saudi economy.
EA has been creating popular video games since its establishment in Redwood City, California, in 1991. Some of its well-known titles include EA FC, Battlefield, and Madden NFL. EA FC has sold 325 million copies since its first release in 1993. These games were initially available on PCs and later gained popularity on PlayStation and other consoles in the late 2000s.
The deal will “position EA to accelerate innovation and growth in building the future of entertainment,” the company said.
