EA-Saudi Arabia deal: Why Saudi-led consortium purchased Digital Arts for £55bn

It is value noting that the deal for PIF to amass EA is but to be formally accepted by the related authorities.

The consortium additionally contains Silver Lake and the corporate Affinity Partners, led by Jared Kushner, US President Donald Trump’s son-in-law.

This isn’t PIF’s first enterprise within the gaming sector – actually, it’s already closely concerned. As properly as beforehand proudly owning an estimated 9-10% of EA, PIF additionally bought firms to safe possession of the Pokemon Go and Monopoly Go video games.

EA has a wide-ranging portfolio of video games. It is accountable for creating best-selling titles together with Apex Legends, Battlefield, Need for Speed and the Sims.

It can also be the makers of EA Sports FC – beforehand often called Fifa – in addition to sports activities video games on the NFL, NBA, UFC and F1.

Its soccer titles have bought 325 million copies since 1993, whereas the Sims has bought 200 million and Need for Speed greater than 150 million.

“With this deal, it’s not just a seat at the table any more – it’s control,” Osborn mentioned.

“When you’ve got control, you’ve got the ability to really drive the direction of that business towards your goal.

“That’s what the Saudi state goes to be focused on.”

The deal would take EA private, meaning all its public shares will be purchased and it will no longer be traded on a stock exchange.

There have been concerns that the deal would result in $20bn of debt and that the revenues of games would be needed to service this.

The buy value additionally put a major 25% premium available on the market worth of EA, valuing it at $210 per share.