The Saudi-led $55 billion takeover of EA has closed

EA, the renowned video game publisher, has been privatised following a transaction worth $55 billion. This was the largest leveraged buyout in history, concluded on Tuesday. The deal, initially announced in September last year, required regulatory approvals that took several months to complete. As a result, the acquisition wrapped up later than initially expected.

Saudi Arabia's sovereign investment body, the Public Investment Fund, currently commands more than 93% of EA. They are joined by private equity firms Silver Lake and Affinity Partners in the ownership. The new leadership includes EA's current CEO, Andrew Wilson, who remains in his position. The company continues to be headquartered in Redwood City, California.

The financial implications of this transaction are significant. To secure the deal, the buyers utilized $20 billion in debt financing. This will be repaid over time, adding to EA's existing financial obligations. Despite this, EA managed to record a profit of $387 million in its most recent fiscal quarter, which concluded on June 30.

EA's commitment to its mission remains steadfast. In a communication to its employees, Wilson reaffirmed the company's dedication to creating the world's greatest games, communities, and creative culture.