Video game giant EA goes private in $55B Saudi-backed buyout

A consortium of private investors plans to acquire Electronic Arts in a roughly $55 billion all-cash transaction, the company said Monday. EA owns the Battlefield, Madden NFL, and Sims franchises. The buyout will be the largest of its kind in history, the game maker said.

Who is in this consortium of buyers? Among the company’s prospective new owners is the Public Investment Fund, the sovereign wealth fund of Saudi Arabia. The other buyers are Silver Lake and Affinity Partners, two American private equity firms. Affinity Partners is owned by President Donald Trump’s son-in-law, Jared Kushner, and is mostly Saudi-funded, according to The New York Times.

When will the sale occur? The deal is expected to close next year, according to EA. After the sale is finalized, the company’s stock won’t be publicly available. The investor consortium planned to develop more games, blend physical and digital experiences, and grow EA through heavy investment, the company said.

If the deal goes through, what will EA stockholders get? They will receive $210 per share in cash, which is roughly 25% more than the last unaffected share price, the company said.

Dig deeper: Read Christina Grube’s report on Amazon’s recent $2.5 billion settlement with aggrieved customers and the FTC.