Electronic Arts is a private company again, but it’s saddled with $20 billion in new debt.
Electronic Arts is now privately owned after a $55 billion buyout of the games publisher closed Tuesday. EA said last week that the deal had cleared all required regulatory hurdles, paving the way for the company and its new owners to wrap things up, several months later than originally planned. The proposed acquisition was announced last September, and EA shareholders voted in favor of the deal a few months later.
The Saudi Arabian Public Investment Fund now owns more than 93 percent of the company. Private equity firms Silver Lake and Affinity Partners are also among the new owners. Current CEO Andrew Wilson remains at the helm of EA, still based in Redwood City, California.
This is the largest leveraged buyout in history. The buyers used $20 billion in debt financing to complete the deal. EA will have to repay this amount over time. For the company’s most recent fiscal quarter, ended June 30, it reported a profit of $387 million after operating expenses and taxes. In a letter to EA employees announcing the closing of the deal, Wilson reiterated the company’s commitment to “creating the world’s greatest games, communities, and creative culture.”
