EA confirms 55bn USD private sale
Electronic Arts has agreed to a $55 billion private buyout led by Saudi Arabia’s PIF, Silver Lake, and Affinity Partners, with CEO Andrew Wilson set to remain in charge as the company transitions away from public markets.
Electronic Arts (EA) has announced it will be acquired in an all-cash, $55 billion leveraged buyout by a consortium composed of Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners - marking one of the largest take-private deals in corporate history.
Under the deal, EA shareholders will receive $210 per share in cash, representing a 25 per cent premium over the company’s unaffected share price before takeover rumors surfaced.
The consortium will also roll PIF’s existing 9.9 per cent stake into the transaction.
EA’s board has approved the transaction, which is expected to close in Q1 FY27, subject to regulatory and shareholder approvals.
After completion, EA’s common stock will be delisted from public markets, with Andrew Wilson remaining as CEO and the company’s headquarters in Redwood City, California, continuing to operate.
Speaking about the deal, Wilson said in a statement: “Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s iconic IP, and created significant value for our business.
“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology.
“Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
Turqi Alnowaiser, Deputy Governor at PIF, added: “PIF has demonstrated a strong commitment to [global gaming and esports] sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
The deal comprises roughly $36 billion in equity and $20 billion in debt financing, with $18 billion expected to be funded at closing.
Financial advisors include JPMorgan - for the debt financing - and Goldman Sachs, for EA, with related legal counsel named in the press release.
This sale comes just weeks before the launch of one of EA’s flagship titles Battlefield 6, with the studio also set to launch other big games like the third Star Wars: Jedi game, Iron Man and another Mass Effect.
