Saudi Arabia's Public Investment Fund closes $55 billion acquisition of EA.

Electronic Arts (EA) is now a privately held company following a $55 billion acquisition that officially closed on Tuesday. The deal, first announced last September, was delayed but has now cleared all necessary regulatory hurdles. EA's shareholders voted in favor of the acquisition a few months after the announcement, paving the way for the transition to private ownership.

The new ownership structure is dominated by Saudi Arabia's Public Investment Fund, which now holds over 93 percent of the company. Private equity firms Silver Lake and Affinity Partners are also significant stakeholders. Current CEO Andrew Wilson will continue to lead EA, which remains headquartered in Redwood City, California. The takeover marks a significant shift in the gaming industry, as it represents the largest leveraged buyout in history.

To finance the acquisition, the buyers incurred $20 billion in debt, which EA will have to manage over time. For its latest fiscal quarter ending June 30, the company reported a profit of $387 million after accounting for operating expenses and taxes. In a letter to employees announcing the closure of the deal, Wilson emphasized EA’s dedication to "building the world's greatest games, communities, and creative culture."

This acquisition could reshape the gaming landscape as EA, known for popular franchises like FIFA and Madden NFL, integrates its operations under new ownership. The financial responsibilities tied to the debt may influence the company's strategic decisions moving forward. Investors, gamers, and industry analysts will be watching closely to see how this change impacts EA’s game development and overall market positioning.