Electronic Arts (EA) has agreed to be acquired in a massive $55-billion US (about $76.5 billion CAD) all-cash deal by a consortium that includes Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
The agreement, announced today, will see the investor group buy 100 per cent of EA’s shares for $210 each—a 25 per cent premium over the company’s unaffected share price of $168.32 on September 25. EA shareholders will vote on the proposal, which has already been approved by the company’s board. Now that’s going to be a pay day for some early EA shareholders.
If completed, the transaction would be the largest all-cash sponsor take-private deal in history. EA will be delisted from public markets but remain headquartered in Redwood City, California, with Andrew Wilson continuing as CEO.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” said Andrew Wilson, Chairman & CEO of Electronic Arts, in a statement on Monday. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
So for gamers, this means EA now has less pressure from Wall Street to answer every quarter about its earnings and can focus solely on its games. But without public scrutiny the company going private means it could also slash more jobs, this time quietly.
PIF already owns a 9.9 per cent stake in EA and will roll that investment into the deal. The group is contributing roughly $36 billion US in equity, with JPMorgan Chase providing $20 billion US in debt financing, most of which will be funded at closing.
The investor group says it sees opportunities to grow EA’s gaming and sports franchises globally. The deal is expected to close in the first quarter of fiscal 2027, subject to regulatory approvals and shareholder consent.
The biggest gaming franchises from EA include its EA Sports FC, Madden NFL, Battlefield, The Sims and more.
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