Video game co EA to go private in record $55billion buyout deal
The consortium, which includes Silver Lake Management, Saudi Arabia’s Public Investment Fund and Jared Kushner’s (US President Donald Trump’s son-in-law) Affinity Partners, agreed to pay $210 per share in cash for the company, a statement on Monday said. That represents a 25% premium to where its shares traded before the talks leaked on Friday.Electronic Arts, the maker of EA Sports FC and The Sims, is selling amid sluggish growth for the $178-billion video game industry, after sales swelled during the pandemic lockdowns.
The company, which has experienced many rounds of layoffs, has been seeking new areas of growth to inspire players who have gravitated toward free-to-play franchises that are continually updated rather than splash out on new titles that can cost $80.Founded in 1982, Electronic Arts is one of the world’s largest independent video-game publishers after a wave of industry consolidation of the past few years.
