Electronic Arts (EA) is to sell the business for $55bn

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Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd.

Electronic Arts (EA), one of the biggest gaming companies in the world, has agreed a deal to sell the company for $55bn (£41bn).

The consortium of buyers includes Saudi Arabia’s Public Investment Fund (PIF), Silver Lake and Jared Kushner’s Affinity Partners.

EA is known for making and publishing best-selling games such as EA FC, formerly known as FIFA, The Sims and Mass Effect.

It is understood to be the largest leveraged buyout in history, where a significant amount of the purchase is financed by borrowing money.

The deal will take EA private – meaning all of its public shares will be purchased, and it will no longer be traded on a stock exchange.

The purchase price puts a significant 25% premium on the market value of EA, valuing it at $210 per share.

Source: newsthemegh.com