The rumors were true: Electronic Arts has announced that it’s sold itself in a $55 billion deal. EA sold itself to an “investor consortium” made up of Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and the private equity firm Silver Lake.
EA said the all-cash deal “positions EA to accelerate innovation and growth to build the future of entertainment.” EA CEO Andrew Wilson is still on board as CEO.
The investor consortium will take over 100% of EA. The PIF already had a 9.9% stake in EA prior to this deal.
It’s a good day for EA stockholders, too, as they are getting $210 per share in cash as part of the deal–that’s a significant premium over what the stock was trading for last week.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” Wilson said. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
PIF’s Turqi Alnowaiser said, “This partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
Affinity’s Egon Durban shared an enthusiastic quote, too. He said, “The future for EA is bright, we are going to invest heavily to grow the business and we are excited to support Andrew and the EA team as the company accelerates innovation, expands its reach worldwide, and continues to deliver incredible experiences to players and fans across generations.”
As for Kushner, President Trump’s son-in-law said, “Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future.”
The PIF has attracted significant controversy over Saudi Arabia’s wide range of human rights violations. The PIF, through its Savvy Games Group, has invested in or acquired numerous gaming companies over the years. Before EA, Savvy bought Pokemon Go developer Niantic’s gaming division for $3.5 billion. The company also owns mobile and social gaming giant Scopely, paying $4.9 billion.
The PIF also owns stakes of Activision Blizzard, Take-Two, Embracer, and Nintendo.
