Saudi Arabia’s sovereign wealth fund acquires EA in the largest leveraged buyout ever, saddling the company with $20 billion in debt.
Saudi Arabia’s Public Investment Fund (PIF) finalized its $55 billion acquisition of Electronic Arts, taking the gaming giant private after a 36-year Nasdaq run. Shareholders received $210 per share in cash, marking the largest leveraged buyout in history, surpassing the 2007 TXU deal that later collapsed in bankruptcy.
The consortium, which includes Silver Lake and Jared Kushner’s Affinity Partners, financed the deal with $20 billion in debt from JPMorgan. PIF, already holding a 9.9% stake in EA, now owns the publisher of *Madden NFL* and *The Sims*, which generated $7.5 billion in revenue last fiscal year.
EA’s new owners face significant leverage, with $20 billion in acquisition debt against $7.5 billion in annual revenue. The deal underscores PIF’s expanding global asset strategy, following its $2 billion investment in Kushner’s fund in 2021.