EA Sold to Saudi-Led Group for $55 Billion
Electronic Arts (EA) has been sold to a Saudi-led group for $55 billion, taking the company private after 36 years of NASDAQ trading. The deal includes $18 billion in debt and plans for $700 million in annual cost cuts, including potential mass layoffs.
Key points
- EA has been sold to a Saudi-led group for $55 billion, the largest gaming acquisition in history.
- The deal includes $18 billion in debt, which EA will service with annual interest payments of around $1.8 billion.
- EA plans to cut $700 million in annual costs, including $170 million in 'organizational efficiencies' that analysts interpret as mass layoffs.
- The company will no longer trade on the NASDAQ, and stockholders will receive $210 per share.
- EA's annual Ebitda is around $1.5 billion, which should be sufficient to cover interest payments.
EA Sold to Saudi-Led Group for $55 Billion
Electronic Arts (EA) has been sold to a Saudi-led group for $55 billion, marking the largest gaming acquisition in history. The deal, which includes $18 billion in debt, takes the company private after 36 years of NASDAQ trading.
As part of the deal, EA plans to cut $700 million in annual costs, including $170 million in 'organizational efficiencies' that analysts interpret as mass layoffs. The company will no longer trade on the NASDAQ, and stockholders will receive $210 per share.
EA's annual Ebitda is around $1.5 billion, which should be sufficient to cover interest payments. The deal is set to close tonight, marking a significant shift in the gaming industry.
Sources
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