Electronic Arts is set to be acquired by a consortium including the Public Investment Fund, Silver Lake, and Affinity Partners in a deal valued at $55 billion

Image credit: Electronic Arts

Update: Electronic Arts announced its acquisition arrangement with a group of investors, including Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners. This consortium is set to purchase the entirety of the game developer, with PIF incorporating its existing shares into the transaction.

Shareholders of EA are slated to receive $210 per share, payable in cash, facilitated by funds from PIF, Silver Lake, and Affinity Partners. The transaction encompasses an investment of approximately $36 billion from PIF, alongside $20 billion in debt, with $18 billion expected at transaction completion.

The acquisition represents the most substantial all-cash sponsor-led take-private transaction ever and is projected to conclude in the first quarter of fiscal year 2027.

EA's CEO, Andrew Wilson, who will continue leading the company, expressed, "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." He further emphasized the company's commitment to advancing the realms of entertainment, sports, and technology alongside their partners.

Original story: Reports suggest that Electronic Arts has been engaged in "advanced talks" regarding a leveraged buyout deal valued at $50 billion. According to the Wall Street Journal, the deal involves Saudi Arabia's PIF, Silver Lake, and the investment entity Affinity Partners, founded by Jared Kushner.

Subsequent to these reports, EA’s market capitalization increased by 15%, elevating its value from $43 billion to approximately $48 billion, as highlighted by IGN.

GamesIndustry.biz has reached out to EA for further insights and comments on these developments.

Experts indicated to Reuters that PIF's participation in the acquiring proposal aligns with its successful global ventures in sports.

If this acquisition proceeds, it will become "the largest ever leveraged buyout" to date, as noted by various outlets. Joost van Dreunen from NYU's Stern School of Business commented that for Saudi Arabia's PIF, successfully acquiring EA would position video games as culturally significant assets, much like cinema and sports.

PIF already owns around 10% of Electronic Arts, having invested over $3 billion in the company in 2021, alongside stakes in Activision Blizzard and Take-Two Interactive. The fund further amplified its stake by 55% in 2023.