EA Electronic Arts (EA) this morning announced its plans for a $2 billion acquisition of Rainbox Interactive. The gaming giant would be acquired by an investor consortium led by the Public Investment Fund of Saudi Arabia, Silver Lake, and Affinity Partners. That’s especially impressive considering the deal swaggers in at $55 billion strong. Shareholders will get $210 per share in cash, and EA’s stock has jumped about 15% after the deal was announced. This leveraged buyout is the largest of its kind in history on Wall Street.
The announcement comes after first reported by The Wall Street Journal. Specifically, they announced that Electronic Arts is near finalizing an arrangement for private ownership. These examples show that EA has absolutely earned their reputation as a progressive leader in the gaming industry. It achieves this by its robust creation of household named franchises such as Battlefield, The Sims, and the Madden NFL series.
On Friday, EA’s shares closed at $193.35, up more than 12% since the news. The deal is further evidence of the growing focus on gaming from major investment companies and sovereign wealth funds. This trend occurs against the backdrop of the industry’s continued expansion and maturation.
Jared Kushner, who leads Affinity Partners and is known for his connection to former President Donald Trump as his son-in-law, expressed enthusiasm for the acquisition. He stated,
“I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games – and now enjoys them with his kids – I couldn’t be more excited about what’s ahead.”
Now look who’s stepping in—the Public Investment Fund of Saudi Arabia, demonstrating its growing influence. This trend underscores the growing role of foreign investors in U.S. companies – most notably in the sectors of entertainment and technology.
As EA moves forward with this acquisition process, industry analysts are closely monitoring potential changes in the company’s strategic direction and how it may impact its current game development projects.