Saudi PIF closes in on $55 billion buyout of Electronic Arts

Almost a year after Saudi Arabia’s Public Investment Fund launched its bid for Electronic Arts, ardent gamer Crown Prince Mohammed bin Salman will take control tomorrow of one of the world’s largest video game companies.

The PIF’s $55 billion take-private deal for EA, backed by private equity firm Silver Lake and Jared Kushner’s Affinity Partners, is expected to formally close at the end of trading on Aug. 4, after clearing a last regulatory hurdle from the European Commission last week.

Electronic Arts oversees a large stable of gaming franchises, from “Battlefield” and “The Sims” to sporting titles like “EA Sports FC,” formally known as “FIFA.” “Battlefield 6” has been a huge hit, selling seven million copies in three days when it launched last October and even outselling “Call of Duty,” one of the Crown Prince’s favorite games.

But the deal, considered the biggest leveraged buyout in history, saddles the new owners with about $20 billion in debt, adding to concerns in the industry that it will lead to fresh rounds of consolidation, cost-cutting and layoffs.

This comes as the PIF’s willingness to pump billions into its trophy investments has been curbed since the deal was struck last September amid a broad reassessment of spending on Vision 2030 mega projects and the growing economic toll of the Iran conflict.