Electronic Arts is set to be purchased by the Public Investment Fund, Silver Lake, and Affinity Partners for $55 billion

Update: Electronic Arts has announced that an agreement has been reached to be taken over by a consortium. This group includes Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners.

The consortium plans to buy the entire company, with PIF re-investing its current shareholding.

Under the terms of the deal, EA's shareholders will receive a payout of $210 in cash per share. Financing for the transaction will be provided by PIF, Silver Lake, and Affinity Partners in cash.

The PIF's existing stock forms a part of this deal, amounting to roughly $36 billion in equity investment, with an additional $20 billion in debt financing—$18 billion of which is anticipated to be secured by the deal's completion.

This acquisition represents the "largest all-cash sponsor take-private investment" ever recorded and is slated for completion by the first quarter of fiscal year 2027.

"Our skilled and passionate teams have crafted remarkable experiences for millions globally, establishing many of the world's most renowned IPs and creating substantial business value," stated EA CEO Andrew Wilson, who will continue to lead the company.

He added, "We intend to advance the realms of entertainment, sports, and technology to unlock further prospects. With our partners, we aim to develop transformative experiences that will inspire future generations. The future we're shaping is immensely exciting."

Original story: It was previously reported that Electronic Arts was engaged in "advanced talks" to transition into a privately-held company via a leveraged buyout valued at $50 billion.

The Wall Street Journal indicated that this initiative involved Saudi Arabia's PIF, Silver Lake, and Jared Kushner's Affinity Partners.

Following these revelations, EA's market capitalization increased by 15%, surging from $43 billion to $48 billion, as observed by IGN.

GamesIndustry.biz has reached out to EA for additional information and statements.

Analysts conversing with Reuters noted that PIF's potential involvement stems from its global achievements in the sports sector.

If executed, this transaction would mark the "largest leveraged buyout ever," according to reports.

The transaction would emphasize how gaming has become as crucial to cultural influence globally as sports or film, asserted Joost van Dreunen, a professor at NYU Stern School of Business.

The PIF holds roughly a 10% stake in Electronic Arts, having purchased over $3 billion of shares in 2021 alongside investments in Activision Blizzard and Take-Two Interactive.

In 2023, PIF expanded its stake in EA by 55%.