Electronic Arts to Be Acquired in $55 Billion Deal by Silver Lake, PIF, and Affinity Partners

Electronic Arts (EA), the renowned video game publisher behind titles such as "Madden NFL" and "The Sims," has agreed to a $55 billion acquisition by a consortium comprising Silver Lake Partners, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners. This transaction, announced Monday, represents the largest leveraged buyout to date.

Under the agreement, EA shareholders will receive $210 per share, a 25% premium over the company's pre-announcement stock price. The deal, which includes approximately $20 billion in debt, is expected to close in the first quarter of EA's fiscal year 2027, pending regulatory and shareholder approvals. Upon completion, EA will transition from a publicly traded entity to a privately held company, with CEO Andrew Wilson continuing to lead operations from its Redwood City, California headquarters.

PIF, which already holds a 9.9% stake in EA, views this acquisition as part of its broader strategy to diversify investments beyond oil, focusing on sectors like gaming and entertainment. Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, stated, "PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators. This partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale."

Silver Lake, a private equity firm with a history of investing in technology and entertainment, expressed confidence in EA's future. Egon Durban, Co-CEO and Managing Partner of Silver Lake, commented, "EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow. We are honored to invest and partner with Andrew – an extraordinary CEO who has doubled revenue, nearly tripled EBITDA, and driven a fivefold increase in market cap during his tenure."

Affinity Partners, founded in 2021 by Jared Kushner, also emphasized the significance of the deal. Kushner remarked, "Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I've admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games – and now enjoys them with his kids – I couldn't be more excited about what's ahead."

The acquisition comes as EA prepares for the release of "Battlefield 6" on October 10, positioning itself in direct competition with Microsoft's "Call of Duty" series. The gaming industry has experienced a slowdown following a surge during the COVID-19 pandemic, with EA undergoing several rounds of layoffs since 2023. This move to privatization is seen as an opportunity for EA to focus on long-term growth and innovation without the pressures of public market scrutiny.

The transaction has been approved by EA’s Board of Directors and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by EA stockholders. Following the close of the transaction, EA’s common stock will no longer be listed on any public market.