EA to be Acquired in $55 Billion Deal by Saudi-Led Consortium

• EA will be acquired in a $55B USD deal by PIF, Silver Lake, and Affinity Partners.
• CEO Andrew Wilson will remain in charge after the acquisition.
• The deal focuses on stable revenue from established franchises.

Electronic Arts Inc. will be taken private in a $55 billion leveraged buyout by a consortium led by Saudi Arabia's Public Investment Fund, private-equity firm Silver Lake and Affinity Partners, the investment firm founded by Jared Kushner, in what would rank as one of the largest technology buyouts on record.

Under the terms of the agreement, EA shareholders will receive $210 a share in cash, representing a 25% premium to the stock's Sept. 25 closing price of $168.32. The transaction values the Redwood City, Calif.-based maker of popular franchises including "Madden NFL" and "The Sims" at roughly $55 billion including debt.

The deal structure includes $36 billion in equity financing and $20 billion in debt, with $18 billion of the debt portion expected to be funded at closing. The acquisition is anticipated to close in the first quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions.

Chief Executive Andrew Wilson will remain at the helm following the transaction, and the company will maintain its Silicon Valley headquarters, according to people familiar with the matter.

EA CEO calls it New Era of Opportunity

The transaction represents the PIF's most significant move yet into the global gaming industry. Turqi Alnowaiser, the fund's deputy governor and head of international investments, said in a statement that the sovereign wealth fund is "uniquely positioned in the global gaming and esports sectors" and intends to support EA's long-term expansion.

The involvement of Mr. Kushner's Affinity Partners, which manages investments backed substantially by Middle Eastern capital, underscores growing Gulf state interest in the gaming sector as part of broader economic diversification efforts.

Mr. Wilson described the transaction as ushering in "a new era of opportunity" for EA, while pledging that the company's "values and our commitment to players and fans around the world remain unchanged." He said the partnership would enable EA to "amplify creativity, accelerate innovation and pursue transformative opportunities" while continuing to deliver what he termed "bold, expressive and deeply connected experiences."

The combination of substantial equity backing and leveraged financing signals investor confidence in EA's profitability trajectory and growth prospects, particularly in sports gaming and established franchises that generate recurring revenue through digital content and services.

Strategic Shift After Restructuring

The buyout comes as EA has undertaken significant operational changes over the past two years. The company has eliminated hundreds of positions, refocused its development efforts on wholly owned intellectual property and shuttered underperforming titles. Among the closures: games from Respawn Entertainment, developer of "Apex Legends," as well as "EA Sports FC Empires" and "MLB Tap Sports Baseball."

Last year, EA restructured "Plants vs. Zombies 3" and consolidated its mobile and high-definition game divisions under unified leadership for key franchises including "EA Sports FC," "Madden NFL" and "The Sims."

The company's mobile gaming portfolio, led by "Star Wars: Galaxy of Heroes," which generates an estimated $1.5 billion annually, also includes "Golf Clash," "EA Sports FC Mobile," "SimCity BuildIt" and "The Sims FreePlay."