EA Nearing $50 Billion Deal With Saudi Arabia And Other Investors To Go Private - Report
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EA Nearing $50 Billion Deal With Saudi Arabia And Other Investors To Go Private - Report
"EA could reportedly go private with a $50 billion deal to be revealed as early as next week between a group of investors, which includes Saudi Arabia's Public Investment Fund (PIF), according to The Wall Street Journal. Alongside PIF, according to people the WSJ said are familiar with the matter, private-equity firm Silver Lake is also reportedly involved with the deal."
"According to the WSJ, if the deal comes together and goes through, this will be the "largest leveraged buyout of all time." The last mega-buyout was in 2007, when Texas-based utility company TXU was purchased by a group of private-equity firms for about $32 billion. Sadia Arabia has made a few investments in the games industry over the last few years. The country also has stakes in both in Activision Blizzard, Take-Two, Embracer, and Nintendo, and currently holds a 2.6% stake in EA."
A consortium that includes Saudi Arabia's Public Investment Fund and private-equity firm Silver Lake is pursuing a roughly $50 billion deal to take Electronic Arts private. The behind-closed-doors discussions have valued EA closer to $50 billion compared with a market value near $43 billion. If completed, the transaction would be the largest leveraged buyout ever, surpassing the 2007 TXU buyout of about $32 billion. Saudi investment activity in gaming has included Scopely's purchase of Niantic's gaming division and stakes in major publishers, and PIF presently holds a 2.6% stake in EA. EA is known for franchises such as FIFA, Madden, NBA, and the new free-to-play Skate.
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