$55 billion for a record deal in the gaming industry

This would be the largest cash acquisition in private equity history, marking a major turning point for the video game industry.

On September 29, the world's leading video game corporation Electronic Arts (EA) - the "father" of famous games such as The Sims and FIFA - announced that it will be acquired by a consortium led by the Public Investment Fund (PIF) of Saudi Arabia for 55 billion USD.

This consortium includes PIF, US investment fund Silver Lake and Affinity Partners – a Miami-based company (USA) founded by former White House advisor Jared Kushner. PIF currently holds a 9.9% stake in EA.

According to the official statement, this will be the largest cash acquisition in the history of the private equity industry, marking a major turning point for the video game industry.

The transaction is expected to close in early fiscal 2027, subject to shareholder and regulatory approval.

The deal, funded by $36 billion in equity from the consortium and about $20 billion in debt from JPMorgan Chase, is seen as PIF’s next strategic move into the gaming sector, demonstrating its ambition to reshape the Saudi Arabian economy according to Vision 2030.

EA President Andrew Wilson said the deal is a recognition of the EA team's efforts and will open up new opportunities in the global market.

Founded in 1982, EA now owns hit titles such as FIFA, Madden NFL, The Sims and Battlefield. In the most recent fiscal year, EA's revenue reached 7.5 billion USD.

After a period of strong growth post-COVID-19, EA and the entire industry are witnessing a slowdown, but key products still maintain their appeal.

Notably, The Sims 4 attracted 85 million players as of May 2024, while EA Sports FC (the new version of FIFA) continued to be among the best-selling games in Western Europe in 2023.

The investment in EA is part of the strategy to diversify the economy, reduce dependence on oil, and make the video game industry a pillar in Crown Prince Mohammed bin Salman's ambitious reform program "Vision 2030" to diversify the national economy and reduce dependence on oil./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/55-ty-usd-cho-thuong-vu-ky-luc-cua-nganh-game-post1066075.vnp