Bankers financing Electronic Arts' leveraged buyout by Saudi Arabia and others raced to sell billions in debt amid U.S. threats against Iran. JPMorgan managed to offload the financing just in time, as President Trump considered military action. EA executives pitched AI's benefits to wary investors during the process.
JPMorgan Chase undertook a high-stakes effort to sell $6.4 billion in bonds and $8.125 billion in leveraged loans to fund the buyout of Electronic Arts, codenamed Project Eagle. The operation faced disruption from escalating U.S.-Iran tensions, with bankers closely monitoring President Trump's social media for announcements on potential bombings or invasion plans. Uncertainty in Middle East markets threatened to collapse the deal, according to a Bloomberg report detailing the events. People familiar with the discussions noted that the geopolitical risks added significant pressure to the timeline. EA Chief Executive Officer Andrew Wilson and Chief Financial Officer Stuart Canfield met potential investors in Miami Beach to address concerns. They explained how artificial intelligence could accelerate the company's growth by assisting in game development, a process that consumes hundreds of millions in research and development annually. Would-be buyers sought reassurance on EA's differentiation, with executives highlighting AI's role in conjuring new projects. The bank ultimately sold all the debt, averting disaster as Trump amassed forces near Iran, including considerations for an assault on Kharg Island—a location featured as a multiplayer map in Battlefield 3, published by EA. This episode underscores the intersection of global politics and corporate finance in the gaming sector.
