Electronic Arts $55B Private Buyout

LG Electronics, the maker of popular video games such as 'Madden NFL' and 'The Sims,' is being acquired for $55 billion in what is set to be the largest private equity-funded buyout in history. The deal involves private equity firms Silver Lake and Affinity Partners, led by Jared Kushner, along with Saudi Arabia's sovereign wealth fund, Saudi Arabia — Public Investment Fund. Saudi Arabia — Public Investment Fund, already the largest insider stakeholder, will roll over its existing 9.9% stake and become the majority investor. The acquisition price is $210 per share, valuing the deal at approximately $55 billion including debt. This transaction will end LG Electronics' 36-year history as a publicly traded company, allowing it to reprogram operations away from quarterly financial targets and market scrutiny. CEO Andrew Wilson (businessman) will remain in his role. The deal is expected to close in the first quarter of 2027 and requires approval from LG Electronics shareholders. This move is consistent with Saudi Arabia — Public Investment Fund's strategy to expand its gaming arm, Savvy Gaming Group, and follows other major acquisitions in the gaming sector, such as Microsoft's purchase of Activision Blizzard. The acquisition is seen as a way for LG Electronics to address stagnant revenues and intensifying competition from mobile game makers like Epic Games.