Right on schedule, the acquisition of EA by Saudi Arabia's Public Investment Fund, Silver Lake, and Jared Kushner's Affinity Partners has closed. One of the biggest publishers in gaming has been bought.
EA is now a private company following the biggest leveraged buyout in history, with the deal clocking in at $55 billion – in considerable excess of EA's previous market value. A $20 billion chunk of that is debt.
Control of series ranging from The Sims and Battlefield to Mass Effect and Dragon Age is now in the hands of a group of investors collectively referred to as the Consortium, with Saudi Arabia's PIF holding a super-majority of the company.
In a press release, EA CEO Andrew Wilson, who was recently awarded an $8 million raise thanks to the success of Battlefield 6 after the people who made Battlefield 6 a success were rewarded with layoffs, says, "This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies."
"We're entering this next chapter from a position of strength with partners who share our vision and ambition," Wilson continues. "Together, we'll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day."
Turqi Alnowaiser, deputy governor and head of international investments at the PIF, a group which has been accused of using acquisitions in entertainment and sports to launder Saudi Arabia's public image and reputation for human rights violations, adds, "Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA’s management team in driving sustained growth and innovation for EA and the industry."
This press release arrived shortly after EA closed its investor relations page, which previously archived calls, reports, and other documentation related to quarterly earnings, strategic planning, leadership changes, and other financial red tape. With the company now privately owned, such reports will no longer be shared publicly, turning one of the most influential publishers in the industry into a complete black box.
The deal's closure will surely only intensify concerns that EA's new owners will take a hacksaw to the company's IP, either by censoring existing series like The Sims or abandoning less profitable series like Dragon Age. The latest installment, Dragon Age: The Veilguard, disappointed EA leadership.
Considerable structural changes typically follow deals like this, and with EA making layoffs already amid wider games industry turmoil, there are concerns that many employees will be cut in the quarters ahead. Multiple games analysts also told GamesRadar+ that EA may pawn the rights to some IP instead of outright burying them.
Additionally, US senators argued the deal presents "foreign influence and national security risks."
Last year, EA told employees that "our creative freedom and player-first values will remain intact" even after the buyout.
