Saudi-led group completes $55bn purchase of gaming giant EA

The acquisition of gaming giant Electronic Arts (EA) by a consortium of investors, including Saudi Arabia's Public Investment Fund (PIF), has been completed for a sum of $55 billion (£41 billion). EA, renowned for popular titles such as FIFA, The Sims, and Mass Effect, is set to become private, with all public shares being purchased and it ceasing to be traded on a stock exchange.

This transaction is considered the largest leveraged buyout in history, with the PIF borrowing $20 billion to finalize the deal. The investors, led by Jared Kushner, President Donald Trump's son-in-law, aim to take EA private and manage the business more aggressively. This move has raised concerns among EA fans, particularly due to the inclusion of Saudi Arabia's strict interpretation of Sharia law, which could restrict artistic expression in games.

The deal ranks as the second-largest gaming acquisition ever, following Microsoft's $69 billion purchase of Activision Blizzard. EA's CEO, Andrew Wilson, remains in his position and stated that the company aims to create transformative experiences. While EA has recently shown strong financial performance, the deal has sparked speculation about its potential impact on the company's future, including potential layoffs and more aggressive monetization strategies.

The PIF's investment in EA is seen as a strategic move to leverage the company's influence in the sports and gaming industries, particularly in Saudi Arabia's growing esports scene. However, this acquisition has also drawn criticism for potential "sportswashing" and concerns over the Saudi government's human rights record.