E. A. SPORTS. IT'S IN... Jared Kushner's investment portfolio
The deal by Saudi Arabia and Jared Kushner's investment firm will turn the developer of EA FC and The Sims into a private company after 36 years on the stock market
Saudi Arabia's Public Investment Fund (PIF) and Affinity Partners, the investment firm led by Jared Kushner, have completed the acquisition of Electronic Arts (EA), the developer behind EA FC (formerly FIFA) and The Sims, in a deal valued at approximately $55 billion.
The deal, which also involved private equity firm Silver Lake Partners, was completed after obtaining the necessary regulatory approvals from the European Union, leading to EA becoming a private company after 36 years of its shares being publicly traded on the stock exchange.
One of the largest financing deals in the sector
The deal includes a loan of about $20 billion, making it one of the largest financing operations in the history of gaming company acquisitions.
Analysts believe that the size of the loan may prompt the new management to implement a broad cost-cutting program, which could include employee layoffs, increased reliance on in-game revenue-generating methods, and a reduction in operating costs.
Kushner: We want to bring EA games to a wider audience
Jared Kushner, the son-in-law of US President Donald Trump, said that EA "created stories, characters, and communities that have become part of the lives of millions of players," adding that the new investors aim to expand the company's global audience and inspire a new generation of developers and gamers.
The largest Saudi investment in the gaming sector
The acquisition marks Saudi Arabia's largest investment in the video game industry to date, following years of expansion by the Public Investment Fund through stakes in companies such as Nintendo, Take-Two Interactive, and several esports businesses.
Founded in 1982, EA is one of the world's largest video game publishers, generating approximately $7.5 billion in annual revenue from franchises including EA FC, The Sims, Madden NFL, and UFC.
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Concerns about changes in game content
The deal sparked wide reactions among players, as a number of fans expressed concerns that Saudi ownership might affect the content of certain games, especially The Sims series, which is known for including themes related to diversity and LGBTQ rights.
Opponents of the deal also criticized Jared Kushner's role, considering that his political connections and investments with foreign government entities could raise questions about conflicts of interest.