One of the biggest pieces of news in gaming this year was EA’s announcement that it was selling itself for $55 billion to investors including Saudi Arabia. The announcement of the deal has sent shockwaves through the gaming world, and now Head of Xbox Game Studios Matt Booty has commented on the deal, saying the price tag reflects how big video games have come in the global media landscape.
“Games have really become a foundational part of entertainment,” Booty told Variety. “And as such, I think we’re seeing these valuations and transactions that really reflect their place in modern entertainment.”
The price of the sale “reflects the value that exists in all of” the gaming IP that EA owns, including Madden, FC, and The Sims, Booty said.
“I’m certainly not [a mergers and acquisition] expert, but I would look at the value of the transaction really being about the forward-looking value of the IP and the stories and what they’ve created, even more so than necessarily, the static or rearward-looking value,” he said.
Microsoft is no stranger to big buyouts, as the company purchased Mojang and Minecraft for $2.5 billion, ZeniMax for $7.5 billion, and Activision Blizzard for $75.4 billion.
The $55 billion would take EA private as part of the biggest Leveraged Buyout (LBO) in history. Saudi Arabia’s Public Investment Fund would take more than 93% ownership of EA if the deal closes, with Jared Kushner’s Affinity Partners and Silver Lake taking the rest.
EA would also be responsible for coming up with $20 billion in the deal, and this has prompted concerns that EA will look to cut costs with layoffs, studio closures, and by selling off assets.
EA’s sale has not been completed, but it’s expected to close in 2026, pending regulatory approval and other closing conditions. A group of EA workers has criticized the sale, saying it’s unnecessary and harmful to workers. People have expressed concerns that the PIF will seek to avoid “the gay stuff” and politics if the deal materializes. For its part, EA has acknowledged that its ability to attract, retain, and motivate developers may be negatively affected by the pending sale.
For more, check out GameSpot’s rundown of all the EA franchises that would be sold if the deal closes.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.gamespot.com ’
