PIF, Jared Kushner’s firm lead $55B buyout of Electronic Arts

Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and Silver Lake agreed to a $55 billion takeover of videogame maker Electronic Arts on Monday.

Should the sale go through, it would be the largest leveraged buyout ever, according to multiple media reports.

EA is the company behind the Madden NFL, EA Sports FC, EA Sports College Football, EA Sports PGA Tour, EA Sports UFC and EA Sports NHL titles, as well as numerous other non-sports titles including The Sims and Battlefield.

The deal would be built on $36 billion in equity and $20 billion in committed debt from JP Morgan.

The new owners would take the company private, and PIF would roll over its 10 percent ownership stake.

Andrew Wilson would remain as EA's chief executive officer following the takeover, and the company would continue to be based in Redwood City, Calif.

Wilson said in a statement, "Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world's most iconic IP and created significant value for our business. This moment is a powerful recognition of their remarkable work.

"Looking ahead, we will continue to push the boundaries of entertainment, sports and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building."

PIF is Saudi Arabia's sovereign wealth fund, which bankrolls the LIV Golf tour and owns the Newcastle United soccer team in England's Premier League, among other sports interests.

Turqi Alnowaiser, deputy governor and head of international investments at PIF, added in a statement, "PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers and IP creators. PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA's long-term growth, while fueling innovation within the industry on a global scale."

EA stockholders are set to receive $210 per share once the deal closes, significantly higher than the $168.32 value on Thursday before news of the sale, Reuters reported.

--Field Level Media