Electronic Arts, the creator of popular video games like “Madden NFL” and “The Sims,” is set to be acquired by an investor group including Saudi Arabia’s sovereign wealth fund in a $55 billion deal, the largest private equity-funded buyout in history. EA shareholders will receive $210 per share, with the deal surpassing previous records.

The Saudi PIF, currently the largest insider stakeholder in EA, will maintain its 9.9% investment in the company. The move is part of the Saudi fund’s strategy to expand its presence in the gaming sector, with recent investments in various gaming publishers and companies like ESL, FACEIT, and Scopely. The deal also involves minority investment in Nintendo.

The acquisition of EA by the investor group, which includes Jared Kushner’s firm and Silver Lake Partners, awaits approval from national security regulators due to Saudi involvement. Despite potential conflicts of interest with President Trump benefiting from Saudi investments, the deal is expected to proceed. The Treasury Department did not immediately comment on the matter.

If the deal goes through as planned, it will mark the end of EA’s 36-year run as a publicly traded company. CEO Andrew Wilson will continue to lead the company, which will be taken private while maintaining its headquarters in Redwood City, California. Kushner expressed excitement about the future of EA under private ownership.

The size of the video game market has attracted large investors, with Microsoft acquiring Activision Blizzard for nearly $69 billion in 2023. The deal with EA marks the second high-profile transaction for Silver Lake, following its involvement in a joint venture to oversee TikTok. Going private will allow EA to focus on operations without market pressures, despite stagnant revenues in recent years.

Analysts have mixed views on the deal, with some believing the offer price falls short of EA’s true value. Others see potential for growth under private ownership, enabling a focus on long-term opportunities. EA shares surged following reports of the acquisition, with the deal expected to close in the first quarter of fiscal 2027 pending shareholder approval.

Read more at Yahoo Finance: Video gamer Electronic Arts to be bought in largest-ever private equity buyout valued at $55 billion