industry

Saudi PIF completes $55B buyout of EA; $700M cuts and layoffs likely

Saudi Arabia’s Public Investment Fund completed a $55 billion leveraged buyout of Electronic Arts, the largest LBO in history. The transaction places billions of debt on EA and the company set a $700 million cost-savings target, including $170 million in organizational efficiencies that will likely come through layoffs. EA promoted Cam Weber to President and Chief Studios Officer and David Tinson to President and Chief Operating Officer as ownership and leadership change.

• Deal value: $55 billion leveraged buyout by Saudi Arabia’s Public Investment Fund, the largest LBO on record.
• Financial impact: the buyout saddled EA with billions in debt tied to the transaction.
• Cost-cutting target: EA set a $700 million savings goal, including $170 million in organizational efficiencies that are expected to include layoffs.
• Leadership changes: Cam Weber promoted to President and Chief Studios Officer; David Tinson promoted to President and Chief Operating Officer.