EA to be Acquired for $55 Billion in Deal Led by Saudi Arabia's PIF
Electronic Arts (EA), the powerhouse behind iconic video game franchises like Madden NFL, Battlefield, and The Sims, is set to be acquired for a staggering $55 billion in the largest-ever leveraged buyout in history. A consortium including Saudi Arabia's Public Investment Fund (PIF), Silver Lake Partners, and Jared Kushner's Affinity Partners will take the company private, offering $210 per share to EA shareholders.
The deal will see EA's headquarters remain in Redwood City, California, and CEO Andrew Wilson, who has led the company since 2013, stay on as the head of the business. Wilson expressed his enthusiasm for the future, calling the acquisition a "powerful recognition" of EA's achievements and saying, “Together with our partners, we will create transformative experiences to inspire generations to come.”
For Saudi Arabia, this move continues a strategic push into the global gaming and esports sectors, following several high-profile investments. PIF has already built stakes in companies like Nintendo and Take-Two Interactive and acquired gaming assets like Scopely Inc. through its subsidiary, Savvy Gaming Group. The deal also highlights the growing influence of private equity firms in the video game sector. Silver Lake, known for its involvement in previous high-profile tech deals, is teaming up with Kushner’s Affinity Partners to reshape EA’s future.
Despite recent challenges, including stagnating annual revenues and increasing competition from rivals like Activision Blizzard, EA’s move to go private is seen as a way to refocus the company without the pressure of quarterly market expectations. The acquisition is expected to close by early 2027, pending approval from EA’s shareholders.
