Game News

EA goes private as its $55bn buyout closes: $210 a share, $18bn of debt and a 93% Saudi stake

Electronic Arts became a private company on 4 August when its $55 billion buyout closed, TheWrap reported. Shareholders receive $210 in cash per share, a 25% premium over the $168.32 unaffected price, and EA's stock stopped trading and will be removed from NASDAQ. The buyers are Saudi Arabia's Public Investment Fund (PIF), private equity firm Silver Lake and Jared Kushner's Affinity Partners.

TheWrap said the equity investment totals about $36 billion, with $20 billion of debt from J.P. Morgan Chase, $18 billion of it funded at closing. Andrew Wilson stays on as chief executive, with the company still based in Redwood City, California.

“We're entering this next chapter from a position of strength with partners who share our vision and ambition.” — Andrew Wilson, via TheWrap

PocketGamer.biz reported that PIF holds a 93% share of the company and quoted Turqi Alnowaiser, PIF's deputy governor, on having been a minority investor in EA “for more than five years”. It said all regulatory approvals were in place by 30 July, after the European Commission cleared the deal, finding limited impact on competition. India's Swarajya described EA as going private after the PIF-led group completed the deal.

How each outlet framed it

• TheWrap — the deal mechanics: price, premium, equity and debt.
• PocketGamer.biz — ownership and approval, with the Saudi fund holding almost all of EA.
• Swarajya — the Saudi-led consortium completing the deal.

What we don't know yet: neither TheWrap nor PocketGamer.biz said what the new owners plan for EA's studios or costs.