BBC News quotes Nick Hurley on the $55 billion purchase of Electronic Arts
It has been announced that major gaming company Electronics Arts is being sold for $55bn (£41bn), to a consortium of buyers including Saudi Arabia's Public Investment Fund (PIF), Silver Lake and Jared Kushner's Affinity Partners.
EA is known for making and publishing best-selling games such as EA FC, formerly known as Fifa, The Sims and Mass Effect. It is understood to be the largest leveraged buyout in history.
BBC News notes in an article on the sale that Saudi Arabia has a significant "need to diversify its economic income". The piece notes that an estimated 40 per cent of Saudi Arabia's wealth is from the sale of oil and gas - it suggests that "with the rapidly changing attitudes towards the use of fossil fuels, there is an acceptance that other revenue streams are vital".
It goes on to note that the country's venture into e-sports has gone relatively unnoticed by many, but Saudi Arabia has hosted major tournaments, including the Esports World Cup, and it will also host 2027's planned Olympic Esports Games.
Nick Hurley, Partner and head of our Employment team, is quoted in the article on investments coming out of Saudi Arabia and its history with gaming companies. Nick explains:
[This deal is further proof that Saudi Arabia means business and is willing to put its money where its mouth is]. The EA buyout is the largest buy-back in Wall Street history and ought to really turbo-charge EA for future growth with the capital it will deliver.
"It really underlines the commitment in the Middle East to a sports/leisure strategy with an eye on the business opportunities that AI is expected to deliver in terms of increased leisure time.
"EA has come a long way since it purchased Bullfrog in Guildford in 1995, and this ought to guarantee its place in the pantheon of interactive games and sports.
Nick is also the co-founder of Guildford Games, a grassroots community initiative that aims to facilitate networking for developers in the Guildford area, with a view to enabling knowledge sharing and facilitating external talks & seminars on topics relevant to the games industry.
Read the full article in BBC News here.
