Electronic Arts to Go Private in Record $55 Billion Acquisition by Investor Consortium
Electronic Arts is going private in a record $55 billion acquisition by an investor consortium, including Saudi Arabia's PIF, Silver Lake, and Affinity Partners, ending its public run.
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Overview
- Electronic Arts (EA) is set to go private in a record $55 billion all-cash acquisition, ending its 36-year run as a publicly traded company.
- The acquisition is led by a consortium of private investors, including Saudi Arabia's Public Investment Fund (PIF), Silver Lake Partners, Affinity Partners, and Jared Kushner.
- This $55 billion transaction, with stockholders receiving $210 per share, represents the largest leveraged buyout in Wall Street history, surpassing the 2007 TXU deal.
- The deal follows stagnant annual revenues for EA and reflects growing investor attraction to the video game market, potentially leading to significant industry changes.
- EA CEO Andrew Wilson will continue his role, overseeing popular franchises like Madden NFL and The Sims, with the deal expected to finalize in Q1 fiscal 2027.
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Analysis
Center-leaning sources cover the Electronic Arts acquisition neutrally, focusing on factual reporting of the $55 billion deal, its scale, and the parties involved. They present a balanced view of potential impacts, attributing any criticisms or skepticism to analysts or external groups, rather than embedding them editorially. The language remains objective, avoiding loaded terms to shape a particular narrative.
"The proposed buyout also marks the latest move from Saudi Arabia’s sovereign wealth fund PIF to invest in gaming."
ABC News"The proposed buyout also marks the latest move from Saudi Arabia’s sovereign wealth fund PIF to invest in gaming."
Associated Press"The company said the all-cash sale to a group that includes Saudi Arabia's Public Investment Fund and Jared Kushner's venture capital firm "positions EA to accelerate innovation and growth to build the future of entertainment.""
USA TODAY"The acquisition will not be finalized until the 2027 fiscal year, which begins in September 2026."
USA TODAY"The deal comes as the gaming industry has seen younger gamers gravitate more toward mobile and free-to-play hits like Fortnite and Roblox, rather than the pricey, franchise-driven blockbusters EA is known for."
Gizmodo"The purchase will be a big gaming feather in the cap of Saudi Arabia, which has been increasing its presence in the industry in recent years."
BBC News"The deal being described as the "largest all-cash sponsor take-private investment in history" reflects a significant milestone for EA and its stakeholders."
ARS Technica"The privatization, which is by far the biggest leveraged buyout ever proposed, is being led by investors including Silver Lake, Saudi Arabia’s Public Investment Fund, and Jared Kushner’s investment firm Affinity Partners."
Deadline"The transaction positions EA to accelerate innovation and growth to build the future of entertainment."
CBS News"The deal was anticipated, with leaks of discussions coming out at the end of last week in a report by The Wall Street Journal."
ABC NewsArticles (15)
Center (10)
FAQ
The main investors are Saudi Arabia's Public Investment Fund (PIF), Silver Lake Partners, Affinity Partners, and Jared Kushner.
The acquisition is valued at $55 billion in an all-cash transaction, making it the largest leveraged buyout in Wall Street history, surpassing the 2007 TXU deal.
EA CEO Andrew Wilson will continue to lead the company, overseeing major franchises including Madden NFL and The Sims after the acquisition.
The deal follows stagnant annual revenues for EA and reflects increasing investor interest in the video game market, with potential for significant industry changes.
The acquisition is expected to be finalized in the first quarter of EA's fiscal year 2027.
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