Electronic Arts (EA), the publisher behind blockbuster game series like Madden, Battlefield, EA Sports FC, and The Sims, is reportedly set to be acquired in a $50 billion deal.
The deal, first reported by The Wall Street Journal, has yet to be confirmed by EA. But if reports are true, it would be one of the biggest leveraged buyouts, which are deals mainly financed by debt, in history. Sources say the deal could be finalized as soon as this week.
The investors in the deal are said to include technology investor Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and President Trump’s son-in-law Jared Kushner’s Affinity Partners. Reuters reports that Saudi Arabia may be attracted by the consistent earnings EA’s sports franchises bring to the table, as titles like Madden and FIFA release new editions every year.
The news comes as Saudi Arabia has been making significant investments in the world of video games in recent years. According to euronews, in March, Savvy Games Group – which is majority owned by Saudi Arabia’s PIF – paid $3.5 billion to buy the gaming division of Niantic, the San Francisco-based software developer behind mobile hits Pokémon Go and Monster Hunter Now. In addition to EA, the fund also has stakes in Nintendo and Take-Two Interactive.
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