Electronic Arts to Go Private in $55 Billion Buyout

Electronic Arts (EA) is set to be acquired for $55 billion by a consortium comprising private equity firm Silver Lake, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners, the investment firm led by Jared Kushner. This transaction represents the largest leveraged buyout in history.

The deal is anticipated to close by June 2026, coinciding with the end of EA's fiscal year 2027 first quarter. Post-acquisition, EA will maintain its headquarters in Redwood City, California, with Andrew Wilson continuing as CEO.

Wilson expressed enthusiasm about the acquisition, stating that EA's teams have delivered extraordinary experiences and created significant value. He emphasized the company's commitment to pushing the boundaries of entertainment, sports, and technology to inspire future generations.

The buyout is structured with approximately $36 billion in equity investment from PIF, Silver Lake, and Affinity Partners, alongside $20 billion in debt financing fully committed by JPMorgan Chase Bank. EA shareholders will receive $210 per share in cash, a 25% premium over the company's closing share price on September 25, prior to reports of the deal.

Turqi Alnowaiser, deputy governor and head of international investments at PIF, highlighted PIF's commitment to the gaming and esports sectors, stating that the partnership will drive EA's long-term growth and fuel industry innovation globally.

Jared Kushner, founder of Affinity Partners, praised EA as an extraordinary company with a world-class management team and a bold vision for the future. He expressed excitement about the company's ability to create iconic, lasting experiences.

This acquisition occurs amid heightened interest in the gaming industry, which has seen a surge in mergers and acquisitions as companies seek to consolidate and expand their portfolios.