Electronic Arts acquired by Silver Lake, Affinity Partners and Saudi Arabia's PIF in $55 bn leveraged buyout
Electronic Arts has been taken private in a $55 billion deal involving Silver Lake, Affinity Partners and Saudi Arabia's Public Investment Fund, with shareholders receiving $210 per share and the company assuming $18 billion of debt.
Electronic Arts (EA) completed a $55 billion leveraged buyout late last night, becoming privately held by investment firm Silver Lake, private-equity group Affinity Partners and Saudi Arabia’s Public Investment Fund (PIF). The transaction will delist EA from the NASDAQ, and shareholders, including employees, will be paid $210 for each share of common stock.
"This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies," EA chief executive Andrew Wilson said in the release, adding that the new owners share the company’s vision for future growth.
"Having been a minority investor in the company for more than five years, we have a deep understanding of EA's unique platform, massive global sports and gaming franchises, and iconic IP," PIF Deputy Governor Turqi Alnowaiser said, noting the fund’s strategic focus on entertainment and sports.
"EA's franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players," Silver Lake CEO Egon Durban said, highlighting plans to invest in AI and other technologies.
"EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people," Affinity Partners CEO Jared Kushner said, expressing support for expanding the company’s audience.
The acquisition, first announced in September, cleared regulatory reviews by the European Commission and the U.S. Federal Trade Commission. It also adds $18 billion of debt to EA’s balance sheet, creating annual interest obligations of about $1.8 billion. Bloomberg’s Jason Schreier reported that EA has told debt investors it intends to cut $700 million in annual costs, including $170 million earmarked for "organizational efficiencies," which analysts interpret as potential large-scale layoffs.
The deal marks a significant shift for one of the gaming industry’s oldest and largest publishers, moving it from public to private ownership and reducing the amount of public financial disclosure required.