Electronic Arts to Be Taken Private in $52.5 Billion Deal Backed by Saudi Fund and Jared Kushner’s Firm

Watch Electronic Arts to Be Taken Private in $52.5 Billion Deal Backed by Saudi Fund and Jared Kushner’s Firm - Rizzle on Dailymotion

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00:00Electronic Arts to be taken private in $52.5 billion deal backed by Saudi Fund and Jared Kushner's firm.

00:07Electronic Arts is set to be acquired for $52.5 billion, or $210 per share,

00:13by a consortium including Silver Lake Partners, Saudi Arabia's Public Investment Fund, PIF, and Jared Kushner's Affinity Partners.

00:20Including EA's debt, the total deal value rises to $55 billion,

00:25surpassing the $32 billion leveraged buyout of Texas utility TXU in 2007.

00:32PIF, already EA's largest insider shareholder with a 9.9% stake, will roll over its existing investment.

00:40Since 2022, PIF has been an active player in the gaming industry,

00:44acquiring minority stakes in major public publishers and purchasing companies like ESL, Faceit, and Scopely.

00:51Analysts note that the EA acquisition would be the largest move yet for PIF's Savvy Gaming Group,

00:58signaling its ambitions to significantly scale in the video gaming market.

01:02Founded in 1982 by former Apple employee Trip Hawkins,

01:06EA went public in 1986 at a split-adjusted $0.52 per share.

01:10CEO Andrew Wilson, in place since 2013, will stay on.

01:15Investor Jared Kushner praised EA's management and legacy, citing personal ties to its games.

01:21The deal comes amid heightened industry competition,

01:24following Microsoft's $69 billion purchase of Activision Blizzard in 2023,

01:29and rising pressure from mobile rivals like Epic Games.

01:33Mike Hickey of the benchmark company criticized the $210 per share takeover offer for Electronic Arts

01:39as undervaluing the company, citing Battlefield 6's upcoming launch,

01:43and a pipeline that could add over $2 billion in bookings by fiscal year 2028.

01:48He called the bid opportunistic, favoring short-term gains over long-term value.

01:54Supporters argue the consortium's resources could help EA pursue riskier growth opportunities.

02:00On Friday, EA shares rose 15% on the rumors and another 5% Monday.

02:06The deal, slated to close in the first quarter of fiscal year 2027, still needs shareholder approval.