Riyadh – Sharikat Mubasher: Saudi Arabia’s Public Investment Fund (PIF) is in advanced talks to join what could become the largest leveraged buyout in history, backing a plan to take videogame giant Electronic Arts (EA) private in a deal that could value the company at around $50 billion, according to people familiar with the matter.
As reported by the Wall Street Journal, the PIF is part of a potential investor group that includes private-equity firm Silver Lake and Affinity Partners. A final agreement for EA—publisher of global hits like FC (formerly FIFA) and Madden NFL—could be announced as soon as next week, the sources said.
The Saudi sovereign wealth fund already owns about 10% of EA and has been steadily expanding its gaming portfolio through its Savvy Games Group, which last year bought California-based Scopely for nearly $5 billion and holds a 6.5% stake in Take-Two Interactive.
If the deal goes through, it would be another major step in PIF’s plan to make Saudi Arabia a leading force in the global gaming industry. EA’s stock jumped nearly 15% on Friday to a record $193.35, lifting the company’s value to about $48 billion as investors waited for possible news.
