One of the most important gaming publishers on this planet is ready to go personal, shaking up the panorama. That’s in keeping with the Wall Street Journal, which stories on Friday that Electronic Arts (EA) is near a $50 billion deal that may see the writer go personal by means of a leveraged buyout.
Citing sources aware of the plans, the report signifies that the buyout can be funded by a bunch of traders, together with the personal fairness agency Silver Lake, in addition to the Saudi Arabian Public Investment Fund (PIF).
Details are scarce, however the report signifies that this information could possibly be formally introduced as early as subsequent week.
Saudi Arabia is already closely invested in gaming
The PIF is already a big investor across numerous games publishers, with varying stakes in companies such as Capcom, Embracer Group, and Nintendo.
The PIF is helmed by Saudi Arabian Crown Prince Mohammed bin Salman, who also owns Fatal Fury and King of Fighters publisher SNK through the MiSK Foundation, which is his non-profit organization.
Notably, Salman has also pushed heavily for deals to expand Saudi Arabian influence in global entertainment, including bringing the FIFA World Cup to the country in 2034. Salman also helped oversee a PIF-led takeover of Newcastle United Football Club in 2021.
In 2018, the U.S. Central Intelligence Agency reported that Salman ordered the assassination of Washington Post journalist Jamal Khashoggi earlier that same year. In 2019, The New York Times reported on how the Saudi Arabian authorities had labored to cowl up the killing, hiding and destroying proof.
EA is presently betting massive with the following Battlefield
Right now, Electronic Arts is looking forward to the launch of Battlefield 6 on October 10. The game has been developed as a collaboration by multiple studios over the last few years, and so far, it’s looking great.
The closed beta saw gargantuan amounts of interest, with peak numbers on Steam reaching well over 500,000 concurrent players. Time will tell if the companies stick the landing, but it looks to be far better received than 2021’s Battlefield 2042, which saw numerous complaints over technical issues and more.
Despite how well it’s looking, the Battlefield franchise is likely not the driving force behind this report of an investment, especially as pertains to the PIF.
Electronic Arts developed and published the official FIFA video game series until FIFA 23 in 2022, at which point the company switched to the EA FC Sports brand after it decided not to renew the FIFA license.
Electronic Arts also develops and publishes multiple other sports games such as Madden NFL and the recently-revived College Football. All of these would provide synergy for the PIF and Saudi Arabia’s goals of expanding influence through sports and other entertainment.
Elsewhere, Electronic Arts (like many other gaming and tech companies) has overseen significant cuts and layoffs this year.
At the start of the year, Electronic Arts laid off a significant number of developers at BioWare, while moving some staff to other teams and projects. BioWare is now continuing to work on the next Mass Effect game with under 100 developers.
Electronic Arts continued and laid off hundreds of workers in April, including at Apex Legends and Star Wars Jedi developer Respawn Entertainment, while also canceling a Titanfall incubation project that was in the works.
In May, Electronic Arts continued its cuts yet again by canceling a Black Panther game in development at Cliffhanger Games and shuttering the studio, which included a significant number of veterans from the (also now shuttered) Middle-earth: Shadow of Mordor developer Monolith Productions.