By William Morgan
Copyright mirror
One of the largest video game publishers in the world, Electronic Arts (EA), has been acquired by a private group of investors for a massive £40 billion($55bn), marking the largest acquisition of a public company in history. The publishing giant responsible for gaming blockbusters like the FIFA (now EA FC), Madden, and Battlefield series was acquired by a consortium of investors, including President Trump’s son-in-law Jared Kushner and Saudi Arabia’s Public Investment Fund. As part of the deal, the group will pay an inflated $210 per share—a significant increase from when the company first listed 36 years ago at $0.52. While gamers excited for the upcoming October 10 release of Battlefield 6 can rest assured that the deal will not impact their enjoyment of the latest instalment in one of EA’s hugely popular titles, the group’s plan for the industry giant is yet unknown. EA’s chief executive, Andrew Wilson, called the company’s £40bn pricetag a “powerful recognition” of their hard work. He told employees in an announcement: “Our new partners bring deep experience across sports, gaming, and entertainment. They are committed with conviction to EA – they believe in our people, our leadership, and the long-term vision we are now building together.” The company’s buyout marks the end of more than 40 years of history following its founding in 1982 by former Apple employee William “Trip” Hawkins. In the decades since, alongside publishing smash hits that have sold over 300 million copies like FIFA, EA has also moved to acquire smaller publishers and add big names to their roster, such as Battlefield publisher DICE. The major deal is the second-largest in the industry’s history, following Microsoft’s contentious acquisition of Activision Blizzard for £51 billion, with UK regulators forcing the firm to spin off certain services to rival Ubisoft. However, the financing of the deal has raised questions among industry experts. The consortium buying the publisher, made up of private equity firm Silver Lake, Saudi Arabia’s sovereign wealth fund, and Jared Kushner’s Affinity Partners, are stumping up $36bn of cash for the acquisition. However, the remaining $20bn will reportedly be financed through loans. Industry expert Christopher Dring, speaking to the BBC , warned that the debt-laden buyout by private equity had raised “anxiety” among gamers. “The revenue generated by big games like EA Sports FC, Madden and Battlefield 6 will be needed to service this debt, which may impact EA’s ability to invest in new games,” he warned.
