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EA goes private under Saudi PIF; $18B debt triggers $700M cost-cutting plan

Electronic Arts was bought by the Saudi Public Investment Fund alongside Silver Lake and Affinity Partners and has been delisted from the NASDAQ after 36 years. Shareholders received $210 per share and EA assumed $18 billion of debt, creating roughly $1.8 billion in annual interest obligations. The company reports about $1.5 billion in annual EBITDA and has told debt investors it will cut $700 million in yearly costs, including $170 million labeled as 'organizational efficiencies.' Large acquisitions and heavy debt burdens in the industry have previously coincided with widespread studio layoffs and closures, making these cuts significant for EA's workforce and operations.

• Ownership change: EA is now private under Saudi Arabia's Public Investment Fund with Silver Lake and Affinity Partners and has been removed from the NASDAQ after 36 years.
• Shareholder payout and debt: All EA shareholders received $210 per share and the company took on $18 billion of debt, implying approximately $1.8 billion in annual interest payments.
• Financial position and planned cuts: EA's annual EBITDA is about $1.5 billion and the company plans to cut $700 million in annual costs, including $170 million in 'organizational efficiencies.'
• Industry context: Recent large publisher deals and restructures (for example, Microsoft’s Blizzard acquisition and subsequent rounds of cuts) have led to mass layoffs and studio closures, making EA's cost-reduction plan a potential indicator of significant workforce reductions.