Electronic Arts Agrees to Record $55B Take-Private Deal
Gaming giant to be acquired by a private equity consortium including Silver Lake and Saudi Arabia's PIF at a 25% premium, sending shares higher.
Electronic Arts (NASDAQ: EA), the video game publisher behind blockbuster franchises like EA Sports FC and Apex Legends, has agreed to be taken private in a landmark $55 billion all-cash deal. The acquisition will be led by a consortium of prominent investors, including private equity firm Silver Lake, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners.
The agreement, which sent EA's stock up by more than 4.6%, values the company at $210 per share. This represents a significant , delivering substantial value to existing stockholders.
The move marks one of the largest leveraged buyouts in the technology and gaming sector, underscoring the immense value private investors place on established interactive entertainment assets. EA's portfolio of annualized sports titles and its massive live-service player base provide the kind of consistent, recurring revenue that is highly attractive for private equity.
Going private will allow Electronic Arts to pursue long-term strategic initiatives without the pressure of quarterly earnings reports. However, the deal is backed by a substantial $20 billion in debt financing, which could introduce new financial pressures. , aligning their price targets with the $210 acquisition price and signaling limited further upside for public market investors.
The transaction also highlights the growing influence of sovereign wealth funds in the global gaming market. For Saudi Arabia's PIF, this acquisition is a major step in its 'Vision 2030' plan to diversify its economy and increase its investments in the global entertainment sector. The involvement of Silver Lake, which has a long history of technology investments, provides deep operational and financial expertise.
The deal is expected to close in the first quarter of fiscal year 2027, subject to customary closing conditions, including the in the U.S. and other key markets.