Electronic Arts has confirmed that it will be acquired by a consortium consisting of Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners in a $55 billion all-cash deal, marking the largest sponsor-led take-private transaction in history.
The agreement will see EA stockholders receive $210 per share in cash. PIF, which already owns a 9.9% stake in EA, will transfer its shares into this new entity.
The transaction will be financed with roughly $36 billion in equity from PIF, Silver Lake, and Affinity Partners, alongside $20 billion in debt financing committed by JPMorgan Chase.
Moreover, EA’s board has unanimously approved the deal, which is expected to close in Q1 FY27, assuming that approvals go through. Then, once finalized, EA will become privately held, with its shares delisted from public markets.
Andrew Wilson, Chairman & CEO of Electronic Arts, said the following:
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.
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.
Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, said the following:
PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators.
PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.
Egon Durban, Co-CEO and Managing Partner of Silver Lake, said the following:
This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies. EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow. We are honored to invest and partner with Andrew – an extraordinary CEO who has doubled revenue, nearly tripled EBITDA, and driven a fivefold increase in market cap during his tenure.
The future for EA is bright, we are going to invest heavily to grow the business and we are excited to support Andrew and the EA team as the company accelerates innovation, expands its reach worldwide, and continues to deliver incredible experiences to players and fans across generations.
Jared Kushner, Chief Executive Officer of Affinity Partners, said the following:
Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I’ve admired their ability to create iconic, lasting experiences, and 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.
Luis A. Ubiñas, Lead Independent Director of EA’s Board of Directors, said the following:
The Board carefully evaluated this opportunity and concluded it delivers compelling value for stockholders and is in the best interests of all stakeholders.
We are pleased that this transaction delivers immediate and certain cash value to our stockholders while strengthening EA’s ability to continue building the communities and experiences that define the future of entertainment.
You can view more intricacies regarding this development via EA’s official website.
