By Prof Dr Ian Blackshaw
It has been reported that a group of buyers, including the Saudi Arabia Public Investment Fund and Affinity Partners, which is led by Jared Kushner, the son-in-law of President Trump, has completed the acquisition of Electronic Arts (EA) for the sum of US$55 billion (around €47.65 billion).
The acquisition is believed to be the largest leveraged buyout in history, meaning that a significant part of the acquisition has been paid for with borrowed money, and how paying back this debt will affect EA, as a business in future, has given rise to much speculation from financial analysts.
Also, the buyers are taking EA private, which means that its shares will no longer be traded on any stock exchange.
Andrew Wilson, who will continue as EA chief executive, remarked that EA plans to "create transformative experiences to inspire generations to come".
PIF has £514 billion (around €600 billion) for the Government of Saudi Arabia to invest in different ventures, including sporting ones, and the acquisition of EA is part of a strategic plan to transform Riyadh into a central hub for global gaming, entertainment, and digital infrastructure.
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