Electronic Arts has transitioned back to private ownership, but it now faces a burden of $20 billion in debt.
Electronic Arts has officially reverted to private ownership following a $55 billion acquisition deal that concluded on Tuesday. The company announced last week that it had successfully navigated all necessary regulatory protocols, allowing for the finalization of the buyout, which took longer than expected. The acquisition was initially unveiled last September, and shareholders of EA sanctioned the transaction a few months later.
The Saudi Public Investment Fund now holds more than 93 percent of EA, with private equity firms Silver Lake and Affinity Partners also taking stake in the company. Andrew Wilson continues as CEO, leading EA from its headquarters in Redwood City, California.
This transaction marks the largest leveraged buyout ever executed. The financial backers employed $20 billion in debt to finalize the purchase, which the company will need to repay gradually. In its latest fiscal quarter, which concluded on June 30, EA reported a profit of $387 million after considering operating expenses and taxes. In a message to employees announcing the acquisition’s completion, Wilson reaffirmed the company’s dedication to “creating the finest games, communities, and innovative culture in the industry.”
