EA Goes Private in $56Bn PIF Deal

Electronic Arts has been taken private in a landmark $56bn deal led by Saudi Arabia's Public Investment Fund, which borrowed $20bn from JP Morgan to finance the acquisition.

The deal removes EA from public stock exchanges, with PIF borrowing $20bn from JP Morgan on top of its $36bn contribution, loading the company with debt. Analysts and journalists have speculated the debt could lead to mass layoffs, aggressive monetization and cost-cutting, while industry figures warn of a hands-on approach from the investment group. Arrowhead Game Studios CEO Shams Jorjani expressed concern the new ownership might prioritise sequels and mega-franchises over EA's diverse portfolio, calling it a potential waste of one of the industry's best catalogues.

The sale has sparked protests from advocacy group Players Alliance HQ and petitions from fans of games like The Sims, which champions inclusivity and LGBT+ relationships, over fears of censorship given Saudi Arabia's laws on same-sex conduct. PIF, a £514bn sovereign wealth fund that also owns Newcastle United, ranks the acquisition as the second-largest in gaming history after Microsoft's $69bn purchase of Activision Blizzard.

EA Goes Private in $56Bn PIF Deal

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EA Goes Private in $56Bn PIF Deal

Most read in this category

ACCORDING TO BREAKING NEWS; BIST 100 INDEX IN BORSA ISTANBUL FINISHED THE DAY AT 14,077.67 POINTS, LOSING 0.43 PERCENT OF ITS VALUE.

GLOBAL SUPPLY DISRUPTED BY US-IRAN AGGRESSION IN STRAIT OF HORMUZ AND HOUTHI THREATS IN BAB EL-MANDEB MIDDLE EAST CRISIS LIVE – LATEST UPDAT

THE UNION ANNOUNCED TUESDAY THAT THE BALLOT FAVORED INDUSTRIAL ACTION, CITING THE BREAKDOWN OF TALKS OVER PAY RISES AND OTHER BENEFITS.

KOREAN CENTRAL BANK WILL ATTEND A MEETING OF TOP CENTRAL BANKERS FROM THE EAST ASIA AND PACIFIC REGION LATER THIS WEEK TO DISCUSS RECENT

2% ON TUESDAY TO A FIVE-WEEK HIGH ON WORRIES THAT ENERGY SUPPLY DISRUPTIONS COULD WORSEN IN THE MIDDLE EAST DUE TO MORE ATTACKS BETWEEN

DUE TO THE INCREASING TENSION IN THE MIDDLE EAST AND THE FLUCTUATIONS IN OIL PRICES, THE AVERAGE PRICE OF GASOLINE IN THE USA EXCEEDED THE L

AUSTRALIA'S PROPERTY MARKET HAS ENTERED A DOWNTURN AFTER BOTH HOUSE AND UNIT PRICES FELL FOR THE FIRST TIME IN MORE THAN THREE YEARS, BRINGI

AN INVESTIGATION FOUND THE PYLON TOPPLED OVER IN JUNE 2024 WHEN CONTRACTORS UNBOLTED THREE OF THE TOWER'S FOUR LEGS AT ONCE.