US $ 55 billion business represents milestone in Saudi Arabia’s economic diversification strategy and should prioritize sports such as EA FC
THE Electronic Arts (EA), one of the largest publishers of electronic games in the world and holding franchises as EA Sports FC, Battlefield and The Simssigned an acquisition agreement of US $ 55 billion with Saudi Arabia Public Investment Fund (PIF). The transaction is expected to be completed in the first quarter of the 2027 fiscal year.
The value of the transaction is a milestone in the search for Saudi Arabia for economic diversification and global highlight, using games as its new tool of influence.
The structure of the purchase imposes EA a indebtedness of US $ 20 billionwhich represents immediate financial pressure for debt service. The revenue of the most consolidated and profitable franchises of the EA will be inevitably channeled to pay this loan.
The acquisition puts in check the creative direction of certain divisions of the EA. While sports games like EA FC should receive massive capital injection, studios focused on narrative games and high -risk simulation, such as Dragon Age, Mass Effect or The Simsmay have their investment contained, or even suffer operational risk under the new risk aversion management.
The main focus of the new EA It will be to maximize cash flow to honor debt, a scenario that can intensify the use of monetization practices criticized by players, such as loot boxes.
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EA SPORTS
Source: Rollingstone
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