Electronic Arts, one of the biggest publishers in the gaming industry, has just been bought by an investment group. Three firms--the Saudi Arabia Public Investment Fund, Silver Lake, and Affinity Partners--will be purchasing EA for a massive $55 billion dollars. This buyout will make EA a private company, with shareholders receiving a 25% bonus payout to their share price. As to how this will affect EA and its gaming divisions going forward, the press release and statements from the investment firms simply state that this move will help EA to expand their worldwide reach and accelerate their innovation and growth within the industry.

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Electronic Arts Inc. (NASDAQ: EA) (“EA” or the “Company”), a global leader in interactive entertainment, today announced that it has entered into a definitive agreement to be acquired by an investor consortium (“the Consortium”) comprised of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. The transaction positions EA to accelerate innovation and growth to build the future of entertainment.

The deal will close sometime in the 2027 fiscal year. Of the $55 billion dollars purchase price, $20 billion will come from debt financing between the three investment groups. This debt could lead to EA cutting even more jobs and limiting what projects the publisher decides to take on, as they pay down the balance over the next few years, according to industry analysists. Electronic Arts' current CEO, Andrew Wilson, will remain with the company after the buyout.

The revenue generated by big games like EA Sports FC, Madden and Battlefield 6 will be needed to service this debt, which may impact EA's ability to invest in new games,

Source

 

[Bladexdsl]

and just when you thought EA couldn't possibly get any worse! i actually predicted this but i thought Tencent was going to be the buyers but with trumps son and the Saudis in charge hoi boy it's countdown till doomsday for sure for EA now.

 

[1stmoon]

Saudi + Trump family influence = no thanks

Won't be long before they start censoring their games

 

[Axido]

My co-worker who really hates Trump and really wants to play BF6 is not gonna like this news.

 

[VinsCool]

So is there a chance for Need for Speed Underground 3 then?

 

[GengarsGhostlyGiggles]

Saudi + Trump family influence = no thanks

Won't be long before they start censoring their games

They already censor games.

 

[Flame]

When a journalist doesn't like an EA game. I hope they don't end up in a body bag.

 

[eskinner3742]

F in chat for the new skate. game

 

[Ettino]

They'll make that 55 billion back in a month or 2. E-sport is huge in the middle east, the gaming stadiums in places like Dubai or Abu Dhabi are just unreal. I know it's oil & blood money there, but when they have that kind of "fuck you" money to throw around, it's crazy what they can do.

 

[NinStar]

EA FC, Madden, NHL (they still make those?) should just be updated digitally than release pointless physical releases since they're the same games with a new roster.

This is not a perfect solution. If they did what you are suggesting they would have to constantly remove content from those games due to contracts with real life agencies and players, and as a consequence, you wouldn't be able to use the roster you want from a specific time period.

 

[chrisrlink]

Good luck with that. Trump's son in law and the Saudis are now in charge

(Sorry best gaming meme i could find for this situation)

 

[Psd99]

Wow Thats an insane amount of money.

 

[Robert Newbie]

EA got sold… even their own company was a microtransaction

Pure poetry. No wonder you wrote that masterpiece about that guy that was being impersonated by his triplet- who happens to have been President of the United States-, so he dons a new name, Iroquois Pliskin, in an effort to save the current present and clear his name.

My favorite part is when they all skateboard around the Big Shell.

 

[retrofan_k]

“EA Sports it’s in the Quran”

 

[Sir Tortoise]

This headline hit me like a major world leader dying or something. Not because it's sad or anything, but like...EA? One of the biggest, most awful companies, the one that buys everyone else out and ruins them, has been bought out? What the hell?

What's next? Is someone gonna buy Disney? Is someone with infinity money going to purchase Pokemon?

 

[genxor]

With all those articles about development crunch and near slave conditions when working on games it's good to see people with such integrity when it comes to working conditions purchase the company. They're really gonna turn this around! /s

 

[codezer0]

Another article was suggesting that, the main buyer behind this move is related to the Commander in cheese? If so, shouldn't this be blocked as conflict of interest? Not that dummander Donnie would care what the gamers think.

 

[ChibiMofo]

"The revenue generated by big games like EA Sports FC, Madden and Battlefield 6 will be needed to service this debt, which may impact EA's ability to invest in new games,"

If you have been following the corporate world since the late 80s as I have, you know exactly what this means. The new "owners" are financing their purchase by saddling the new EA with a tremendous amount of debt. And that invariably leads to layoffs in the short term and often leads to a bankruptcy 5-7 years down the road. Not that anyone will miss EA when it is gone. They used to annually win the Consumerist Worst Company in America award.

 

[Space_Goddess_Samus_Aran]

When do we get Battlefield Saudi Arabia?

 

[Vixi]

What if some of the shareholders didn't want to sell. Are they forced to take that 25% deal?

 

[G25900]

Was thinking this could be the best thing for EA's games (New people could fix it) or the worst (they don't), then I saw who actually owns it and yeah, EA's not going to be around for too long, and given the state they've been in for a while that's probably for the best.