Electronic Arts to Go Private in $55 Billion Megadeal
A consortium led by Silver Lake, Saudi Arabia's PIF, and Affinity Partners will acquire the video game giant for $210 per share, a 25% premium.
Video game publisher Electronic Arts (EA) is set to be taken private in a landmark $55 billion leveraged buyout, marking one of the largest acquisitions in the technology sector this year. A consortium including private equity firm Silver Lake, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners has agreed to acquire the company for $210 per share.
The deal represents a significant , sending the stock soaring over 20% on staggering volume of more than six times the daily average. This acquisition continues a major consolidation trend within the gaming industry, following high-profile deals like Microsoft's blockbuster purchase of Activision Blizzard.
The move to take EA private is seen by analysts as a strategic play to allow the publisher of blockbuster franchises like Madden NFL and FIFA to invest in long-term growth without the pressures of quarterly earnings reports. The involvement of sovereign wealth funds highlights a growing trend of , as nations seek to diversify their economies and tap into the lucrative entertainment market.
According to the , the transaction is one of the largest leveraged buyouts in history. This acquisition underscores the immense value and predictable revenue streams generated by top-tier video game intellectual property. As development costs for AAA games continue to escalate, industry experts believe and meet rising fan expectations. The transaction is expected to close in early 2027, pending regulatory approval.