Saudi-led group completes $55bn purchase of gaming giant EA
The sale of gaming giant Electronic Arts (EA) for $55bn (£41bn) to a group of buyers including Saudi Arabia's Public Investment Fund (PIF) has been finalised.
A record $55 billion purchase of the gaming giant Electronic Arts (EA) has been completed by a consortium of investors, including Saudi Arabia's Public Investment Fund (PIF). The group, which includes Affinity Partners led by President Donald Trump's son-in-law, Jared Kushner, is taking EA private and leaving its public shares without trading on the stock exchange.
The largest leveraged buyout in history, the deal is partially financed through a $20 billion loan from JPMorgan, with the company bearing the debt. The nature of the buyout is expected to bring about significant changes, possibly leading to mass layoffs, more aggressive monetization, and cost-cutting measures. Critics fear the PIF's influence could lead to censorship and reduction of free speech, LGBTQI+ representation, and other aspects of Western politics in EA's games.
The deal has been criticized by gaming communities and some fans, particularly due to EA's inclusive ethos and the potential for Saudi Arabia's conservative stance to influence creative decisions. Saudi Arabia's investment in EA is seen as a strategic move to leverage the company's global reach and influence, as well as to potentially promote the country's image while potentially downplaying its human rights issues.
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