Saudi Arabia's PIF completes acquisition of Electronic Arts

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Set us as preferred Electronic Arts is now a private company, owned by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake and Affinity Partners.The $55 billion acquisition of the gaming giant was first announced last September, approved by EA’s shareholders in December, and completed on Tuesday, according to a press release.The deal marked the largest all-cash sponsor take-private investment ever, the company said.

Saudi Arabia’s PIF now controls most of the company, and EA agreed to take on roughly $20 billion in debt.“Having been a minority investor in the company for more than five years, we have a deep understanding of Electronic Arts’ unique platform, massive global sports and gaming franchises, and iconic IP,” said Turqi Alnowaiser, PIF’s deputy governor and head of international investments, in a statement.“Together, the consortium [EA’s new owners] 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.”Under its new owners, EA’s headquarters will remain in Redwood City and Chief Executive Andrew Wilson will keep his position.Recently, the company has been focusing on its major tentpole franchises.

Some of its most notable IPs include Battlefield, The Sims and its variety of sports games like EA Sports FC and Madden NFL.It’s likely that during this transition period, EA will depend more on its reliable releases rather than testing out new smaller games.

Hollywood Inc.Last year, gaming giant Electronic Arts announced that it would be acquired by private equity firms for $55 billion.

The Players Alliance, a group of gamers, is protesting the deal, citing fears about corporate consolidation in the industry.The acquisition from Saudi Arabia’s PIF follows the funds efforts to consolidate some of its inve...