Electronic Arts To Go Private in $55 Billion USD Deal

Summary

• Electronic Arts is set to go private in a historic $55 billion USD acquisition
• The deal is backed by a consortium of investors, including Saudi Arabia, Silver Lake, and Affinity Partners
• The move allows EA to make long-term strategic decisions without the pressure of a public company

In a landmark decision that will reshape the gaming industry, Electronic Arts (EA) is set to go private in a historic $55 billion USD acquisition. The deal, one of the largest leveraged buyouts ever, is led by a powerful consortium of investors: private equity firm Silver Lake, Saudi Arabia‘s sovereign wealth fund PIF, and Affinity Partners, which is led by Jared Kushner. The transaction will end EA’s 36-year history as a publicly traded company.

The buyout will give EA stockholders $210 USD per share, a 25% premium to the company’s stock price prior to the announcement. According to reports, the deal is fueled by a massive bet on EA’s long-term growth potential and a desire to restructure the company without the constant pressure of meeting quarterly earnings targets. By going private, EA will be able to make long-term strategic decisions and invest in innovation without the scrutiny of public investors.

The acquisition is also a reflection of the growing global interest in the gaming sector. PIF has been an active player in the market for several years, making this its biggest move to date. While the deal is a monumental step for the company, it has also raised concerns among some gamers about the future of their favorite franchises, given Saudi Arabia’s stance on minority rights. The acquisition is expected to close in the first quarter of fiscal 2027, pending regulatory approval.