Electronic Arts to Go Private in Record $55 Billion Buyout
A private equity consortium including Silver Lake and Saudi Arabia's PIF will acquire the video game giant at a significant premium.
Electronic Arts (NASDAQ: EA), the video game behemoth behind franchises like FIFA and Madden NFL, has agreed to be taken private in a landmark $55 billion deal, one of the largest leveraged buyouts in history. The all-cash transaction is being led by a consortium of investors including private equity firm Silver Lake and Saudi Arabia's Public Investment Fund (PIF).
Under the terms of the agreement, EA shareholders will receive $210 per share, representing a substantial 25% premium over the stock's recent trading price. The move, , will end the company's 36-year run on the public market and signals a major shift in its corporate strategy.
The acquisition is seen by market watchers as a strategic move to allow EA to innovate and restructure without the short-term pressures of quarterly earnings reports. By going private, to invest in long-term projects and navigate a slowdown in the global video gaming industry.
This deal also highlights a growing trend of consolidation within the entertainment and technology sectors. For Saudi Arabia's PIF, which already held a significant stake in EA, the acquisition deepens its aggressive investment into the global gaming market as it seeks to diversify its economy beyond oil. The transaction in the rapidly expanding world of interactive entertainment.
The deal is expected to close in the first quarter of fiscal year 2027, pending shareholder and regulatory approvals. CEO Andrew Wilson is expected to continue leading the company from its headquarters in Redwood City, California.