Electronic Arts to Be Acquired by Saudi-Led Consortium in $55 Billion Deal

Electronic Arts (EA), the renowned video game publisher behind franchises such as EA Sports FC, Madden NFL, and The Sims, has agreed to be acquired by a consortium led by Saudi Arabia's Public Investment Fund (PIF), along with private equity firms Silver Lake and Affinity Partners. The all-cash transaction is valued at $55 billion, making it one of the largest private equity acquisitions to date. Under the terms of the agreement, EA shareholders will receive $210 per share, representing a 25% premium over the company's recent unaffected stock price. The deal is expected to close in the first quarter of fiscal 2027, pending regulatory approvals and shareholder consent. Upon completion, EA will become a privately held company, with its headquarters remaining in Redwood City, California. CEO Andrew Wilson will continue to lead the company. PIF, which already holds a 9.9% stake in EA, will roll over its existing investment as part of the transaction. The consortium plans to provide $36 billion in equity and secure $20 billion in debt financing from JPMorgan Chase. This acquisition aligns with PIF's ongoing strategy to expand its presence in the gaming industry, following previous investments in companies such as Nintendo, Activision Blizzard, and Take-Two Interactive. The deal is subject to regulatory review, including scrutiny from the Committee on Foreign Investment in the United States (CFIUS), due to the involvement of foreign investors. If approved, this transaction will conclude EA's 36-year history as a publicly traded company, allowing it to focus on long-term growth opportunities without the pressures of public market expectations.