The sovereign fund of Saudi Arabia, along with the investment funds Silver Lake and Affinity Partners, has formalized the acquisition of Electronic Arts for a total of 55 billion dollars, becoming the second most expensive purchase in the video game industry, only surpassed by Activision-Blizzard-King. The offer includes 100% of EA’s shares, with a valuation of 210 dollars per share, representing a 25% increase compared to the closing of the shares on September 25.
The largest leveraged buyout in history
Of this amount, 36 billion dollars will be in cash, while the remaining 20 billion will be financed through debt managed by JP Morgan. This financing structure has generated speculation about the financial strategy of the new owners, who are looking to optimize EA’s profits in a context of significant debt.
Buyers have indicated their intention to use artificial intelligence to increase EA’s profits in the coming years, which could lead to cuts and restructuring to maximize profitability. This approach suggests a similar direction to that adopted by companies in the sector, which often prioritize more profitable franchises at the expense of new risky projects.
This purchase could influence the increase of micropayments in EA titles, as happened previously after the acquisition of Scopely, which has altered the experience of many players. It is likely that iconic franchises such as EA Sports FC will experience changes in their operating model, seeking to maximize revenue beyond traditional collaborations with sports entities.
Divisions like Bioware, which have struggled to remain competitive, may face greater uncertainty in this new framework, while titles like Battlefield seem to have more stability in the vision of the new owners. However, the future of other projects remains up in the air, leaving fans in anticipation.
