In brief
Electronic Arts (EA), known for blockbuster games like EA FC and The Sims, has agreed to be sold for $55 billion, led by a consortium including Saudi Arabia's Public Investment Fund. This acquisition, the largest in gaming history, will take EA private, raising concerns about potential debt and investment in new games. EA's CEO, Andrew Wilson, welcomes the deal as a recognition of the firm's contributions to the gaming industry.
Electronic Arts (EA), one of the biggest gaming companies in the world, has agreed a deal to sell the company for $55bn (£41bn).
The consortium of buyers include Saudi Arabia's Public Investment Fund (PIF), Silver Lake and Jared Kushner's Affinity Partners.
EA is known for making and publishing best-selling games such as EA FC, formerly known as FIFA, The Sims and Mass Effect.
It is understood to be the largest leveraged buyout in history - where a significant amount of the purchase is financed by borrowing money.
The deal will take EA private - meaning all of its public shares will be purchased and it will no longer be traded on a stock exchange.
The purchase price puts a significant 25% premium on the market value of EA, valuing it at $210 per share.
It is the second most valuable gaming purchase in history, following Microsoft's $69bn deal to buy Call of Duty publisher Activision Blizzard - which went through after significant battles with global regulators.
EA boss Andrew Wilson, who will remain in post, said it was a powerful recognition of the firm's work.
The firms buying EA will contribute approximately $36bn, with the remaining amount being financed by loans.
The purchase will be a big gaming feather in the cap of Saudi Arabia, which has been increasing its presence in the industry in recent years.
Saudi Arabia has made waves in the eSports industry, hosting major tournaments including the eSports World Cup, and is set to host 2027's planned Olympic esports Games.
