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EA, which confirmed the deal late on Tuesday, said its stock has ceased trading and will be delisted from the Nasdaq. Its shareholders will receive $210 in cash per share.

The deal represents further Saudi expansion into the world of sports and gaming. PIF's head of international investments Turqi Alnowaiser said in a statement that "entertainment and sports are key areas of strategic focus" for the fund.

Analysts have previously highlighted the high level of debt EA is taking on as part of the deal, while questioning the future of its intellectual property.

PIF is reportedly borrowing $20 billion from the deal's advisor JPMorgan to finalize proceedings, which is thought to be the largest leveraged buyout in history.

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javajaws said:

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Don't expect anything out of EA from here on out. As part of the sale they took on $18 billion in debt (the money that was borrowed to buy them!). That works out to around $1.8 billion a year in interest. I honestly don't know what the Saudi's are thinking. I expect this to go south just like their investment in LIV did.

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javajaws said:

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Don't expect anything out of EA from here on out. As part of the sale they took on $18 billion in debt (the money that was borrowed to buy them!). That works out to around $1.8 billion a year in interest. I honestly don't know what the Saudi's are thinking. I expect this to go south just like their investment in LIV did.

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boy09 said:

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javajaws said:

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Don't expect anything out of EA from here on out. As part of the sale they took on $18 billion in debt (the money that was borrowed to buy them!). That works out to around $1.8 billion a year in interest. I honestly don't know what the Saudi's are thinking. I expect this to go south just like their investment in LIV did.

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I mean, they're thinking they're just going to follow the leveraged buyout playbook. Strip it down, mass layoffs, etc. They've already said their plan is to cut $700 million in annual operating cost. Continue pumping out poop from a butt (likely heavily AI generated) which people will continue to buy. Just focus on the big boys you can crank out every year; FIFA, Madden, Battelfield, etc. Then sell off the carcass several years down the road once the debt is paid down. The people at the top pulling the strings are going to make out just fine on this deal, at the cost of everyone else..

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