SAUDI FUND COMPLETES £41BN TAKEOVER OF GAMING PUBLISHER EA

Electronic Arts has become a privately held company following completion of a $55 billion (£41 billion) acquisition by a consortium led by Saudi Arabia's Public Investment Fund (PIF). The deal closed on Tuesday after clearing all required regulatory approvals. PIF now owns over 93 per cent of the company, with private equity firms Silver Lake and Affinity Partners holding minority stakes. Andrew Wilson remains chief executive of the gaming publisher, which is based in Redwood City, California.

The transaction is believed to be the largest leveraged buyout in history. The buyers financed $20 billion of the purchase price through debt, which EA will service over time. The remaining $36 billion was provided by the consortium members. For its most recent fiscal quarter ending 30 June, EA recorded a profit of $387 million after operating expenses and taxes. The acquisition was announced in September and received shareholder approval several months later, though completion took longer than initially anticipated.

The takeover has prompted concern among some observers about EA's creative direction under new ownership. Bloomberg journalist Jason Schreier suggested the debt burden could prompt "mass layoffs, more aggressive monetisation, and other big cost-cutting measures". Game industry analysts noted that private equity firms typically implement hands-on management approaches. The advocacy group Players Alliance HQ launched a campaign asking gamers to petition politicians, citing concern that PIF ownership could influence creative decisions on themes including LGBTQI+ representation in franchises such as The Sims.