why did ea sell

Electronic Arts (EA) was sold in a record-setting $55 billion leveraged buyout to a consortium including Saudi Arabia's Public Investment Fund (PIF), the private equity firm Silver Lake, and Jared Kushner's Affinity Partners. The primary reasons for this sale were to transition EA to private ownership, allowing the company to focus on long-term growth opportunities and innovation without the pressures of public market scrutiny. The deal reflects a 25% premium on EA's market valuation and is positioned as a strategic move to fast-track innovation and expansion amid a sluggish video game market where consumer spending has become more selective. EA's leadership will remain intact, with CEO Andrew Wilson continuing his role, signaling confidence in the company's future trajectory. The acquisition is part of Saudi Arabia's broader ambition to expand its presence in the global gaming and sports industries, betting on the attractiveness and sustainability of blockbuster game franchises. However, there are concerns about the large debt incurred in the deal ($20 billion borrowed), which might influence EA's investment strategy in developing new games and could lead to cost-cutting measures under private equity ownership.