Saudi-led group completes $55B buyout of gaming giant EA
The sale of Electronic Arts has been finalized
A consortium led by Saudi Arabia's Public Investment Fund has finalized the $55 billion acquisition of Electronic Arts, taking the gaming giant private in what is believed to be the largest leveraged buyout in history. The deal, which includes Jared Kushner's Affinity Partners, has sparked concerns among fans about potential censorship of LGBTQ+ content in games like The Sims, given Saudi Arabia's laws. Analysts warn of aggressive management by private equity, while PIF sees EA as a soft power asset with global reach.
"What is clear is that a state seeking to shape perceptions now owns an asset with proven reach to billions of people."
- tomkarho
End of an era. Who do we vote as the worst company ever now?
- rockskon
What a waste of Saudi money.
- krige
Because the Saudis leveraged this buyout via a massive loan from JP Morgan, EA's debt is now 10 times higher than it was when it was a publicly traded company: $2.2b to $22b.
Turns out the notion that they wouldn’t need humans to make games and they would use AI for most things was a pipe dream and firing staff to be profitable with the huge loan didn't work.
Now they are fucked.
Every company that spends money to buy up companies died and goes defunct because they keep failing to realize that they have to keep spending loads of money to make money and it doesn’t just roll in after acquiring IPs. Not even mobile slop or live service can save them anymore.
- LarsDu88
Does this mean we'll finally get a new Sim City?
- _carbyau_
Between Saudi and right wing influence it seems one publisher will be trying to influence social commentary.