Electronic Arts agrees to a $55 billion deal with private investors, making it the largest leveraged buyout in history. Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and Silver Lake will fund the purchase. The deal aims to boost Saudi Arabia as a global hub for games and sports.

The EA deal signals a potential return of massive leveraged buyouts. Shareholders will receive $210 per share, a 25% premium. EA’s sports portfolio remains popular, with the upcoming “Battlefield 6” launch highly anticipated. The deal is seen as beneficial for EA’s long-term growth opportunities.

The acquisition is seen as falling short of EA’s true value by some analysts. The company’s strong sports portfolio and recognizable titles have driven consistent revenue. The deal aligns with Saudi Arabia’s goal to diversify its economy, investing in various sectors like sports and gaming.

The transaction is set to close in the first quarter of fiscal year 2027, with $18 billion of debt financed at closing. Previous leveraged buyouts like Toys “R” Us and Hertz faced bankruptcy. EA must pay a $1 billion fee if the merger is terminated due to certain conditions.

Overall, the EA acquisition by private investors marks a significant development in the gaming industry, with potential implications for future big deals and the global gaming landscape.

Read more at Yahoo Finance: ‘Battlefield’ maker Electronic Arts to go private in record-setting $55 billion LBO