Core Viewpoint - Electronic Arts (EA) is set to go private in a $55 billion deal led by the Saudi Arabian Public Investment Fund (PIF), marking the largest leveraged buyout in Wall Street history [1] Company Summary - The PIF currently owns nearly 10% of EA, which will be consolidated into its ownership stake following the deal [3] - EA has experienced stagnant annual revenues over the past five years, with a stock increase of only 56%, lagging behind the S&P's 100% growth during the same period [5] - EA will take on approximately $20 billion in debt to finance the deal, which may pressure the company to reduce costs or enhance monetization strategies [6] Industry Summary - The deal is expected to trigger further consolidation and mergers and acquisitions (M&A) within the video game industry, positively impacting shares of other companies like Take-Two Interactive and Roblox [2][5] - The PIF has been actively investing in the gaming sector, acquiring stakes in major companies and sponsoring esports competitions, indicating a strategic push to build a gaming empire [4] - The gaming industry is currently facing a slump, with traditional publishers like Take-Two and Activision experiencing challenges, while companies like Roblox are showing significant growth [5][9]