Electronic Arts has officially become a private company following the close of a $55 billion take-private deal led by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners.
Key facts
- EA has officially become a private company, according to The Verge.
- The deal was worth $55 billion and closed on Tuesday.
- The investor group is led by Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
- The PIF will reportedly own 93.4 percent of the company.
- The take-private deal was first announced last September.
Electronic Arts, the video game publisher behind some of the industry’s biggest franchises, has officially become a private company. According to The Verge, EA confirmed on Tuesday that the deal to take it private had successfully closed.
The move follows an announcement made last September, when EA revealed that an investor group would be taking the company private in a deal valued at $55 billion. That group is led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
As part of the arrangement, the PIF will reportedly own 93.4 percent of the company, according to The Verge. That would give the Saudi sovereign wealth fund a controlling stake in one of the largest game publishers in the world.
The completion of the deal marks the end of EA’s status as a publicly traded company. Going private removes a company from the stock market, shifting ownership and control from public shareholders to the new investor group.
The transaction represents one of the most significant developments in the video game business, bringing a major publisher under the ownership of a Saudi-led group at a $55 billion valuation.
Why it matters
EA is one of the largest video game publishers in the world, and its shift from a public company to private ownership under a Saudi-led investor group signals the growing role of sovereign wealth funds in entertainment and technology. The change in ownership structure could influence how one of gaming's biggest players is run in the years ahead.
Frequently asked questions
How much was the EA deal worth?
According to The Verge, the deal to take EA private was valued at $55 billion.
Who is buying EA?
An investor group led by Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners. The PIF will reportedly own 93.4 percent of the company.
When was the deal first announced?
EA announced the take-private deal last September, and the company confirmed the deal closed on Tuesday, according to The Verge.