On Monday morning, Electronic Arts officially confirmed reports from Friday regarding plans to transition to a private ownership model. The video game giant has entered into an agreement with Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners, which will collectively invest approximately $55 billion in acquiring the company. This transaction is characterized as the “largest all-cash sponsor take-private investment in history.”
Under the terms of the deal, EA stockholders will receive $210 per share, presenting a 25 percent premium based on the closing share price of $168.32 last Thursday. The offer greatly exceeds the company’s all-time high of $179. Following the initial reports of the sale, EA’s stock closed at $193.35 on Friday and has seen pre-market trading valuations around $203.50 per share.
Andrew Wilson, EA’s CEO, is expected to remain with the company post-transaction, which is anticipated to conclude in early 2027. In a message to employees, Wilson remarked, “this moment is a recognition of your creativity, your innovation, and your passion. You have built some of the world’s most iconic IP, created stories that have inspired global communities, and helped shape culture through interactive experiences. Everything we have achieved—and everything that lies ahead—is because of you.”
The buyers
The PIF already possessed a 9.9 percent stake in EA’s publicly traded shares, which will be included in the leveraged buyout arrangement. Of the overall funding, around $36 billion will be secured through cash equity investments from the three firms, alongside $20 billion sourced from leveraged debt arranged by JPMorgan Chase Bank.
The Public Investment Fund of Saudi Arabia has previously invested heavily in major gaming companies, encompassing Nintendo, Take Two, Activision Blizzard, Capcom, Nexon, and Koei Tecmo, among others, through the Savvy Games Group. In 2023, the PIF withdrew from a potential $2 billion acquisition of the gaming company Embracer Group.
Silver Lake is also recognized for its role in a contentious agreement aimed at bringing TikTok under the management of US-based entities. Furthermore, the firm played a pivotal role in taking Dell private in a $25 billion transaction back in 2013.
Jared Kushner, CEO of Affinity Partners and President Trump’s son-in-law, expressed enthusiasm about the acquisition, stating he has long admired EA’s ability to create memorable experiences. He added, “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.”
EA originally went public on the NASDAQ in 1990, and by 1996, the company had achieved a market capitalization of approximately $1.61 billion. As of last week, its valuation was around $43 billion.
In the fiscal year ending March 31, 2025, the company reported revenues of $7.5 billion, driven by popular franchises including Madden NFL, EA Sports FC, Battlefield, The Sims, Dragon Age, and Plants vs. Zombies.
