#public-investment-fund

#public-investment-fund

The country's Public Investment Fund has made a bunch of bad bets, according to The New York Times (via Game Developer). It reports that the sovereign wealth fund is running low on cash for new investments. You might remember one of them being a concept for a futuristic city in the desert in the shape of one long line. This makes the fund's massive bid to take EA private seem somewhat more desperate and precarious,

Electronic Arts has announced plans to go private in what will be the largest leveraged buyout in history. The $55 billion purchase of the entertainment giant behind franchises that include Madden NFL and Battlefield is set to close in the first quarter of fiscal year 2027. Saudi Arabia's Public Investment Fund (PIF) will be, by far, the majority investor in EA, one of the largest third-party publishers of video games. Silver Lake and Affinity Partners (whose CEO is Donald Trump's son-in-law Jared Kushner) will own minority interests. CEO Andrew Wilson will continue to head EA.

The $55 billion sale of Electronic Arts to Saudi Arabia's Public Investment Fund and a group of other private equity investors is a big deal. Some people are going to make a lot of money off it. Others may lose their jobs when the interest bill for the debt-financed portion of the leveraged buyout comes due. CEO Andrew Wilson, who will remain in charge of the Madden and Battlefield publisher even after the sale closes, is thanking his employees.