Public Investment Fund, Silver Lake, and Affinity Partners are set to acquire EA for $55 billion

Update: Electronic Arts (EA) has officially announced an agreement to be bought by a group of investors, which includes Saudi Arabia's Public Investment Fund (PIF), alongside Silver Lake and Affinity Partners.

The deal involves the investors purchasing all of EA, with PIF utilizing its current stake in the company.

Shareholders of EA will receive $210 in cash per share as part of this acquisition, funded through cash contributions from PIF, Silver Lake, and Affinity Partners.

This transaction incorporates PIF's existing investment in EA, forming an approximate $36 billion equity deal and $20 billion in debt financing, with $18 billion anticipated at closure.

The acquisition represents the largest all-cash private equity buyout ever attempted and is projected to finalize in the fiscal first quarter of 2027.

EA's CEO, Andrew Wilson, who will maintain his role, commented that EA's dedicated teams have offered incredible experiences to millions, building iconic intellectual properties and adding immense value to the company.

Wilson expressed optimism about advancing entertainment, sports, and technology boundaries with the new investors to create groundbreaking experiences for future generations.

Original story: Reports indicated Electronic Arts was in "advanced discussions" to become private through a leveraged buyout valued at $50 billion.

Citing The Wall Street Journal, sources pointed to the involvement of Saudi Arabia's PIF, Silver Lake, and Affinity Partners.

Following these reports, EA's market capitalization rose from $43 billion to $48 billion, noted by IGN.

GamesIndustry.biz has reached out to EA for more details.

Experts informed Reuters that PIF's involvement could be attributed to its success in global sports ventures.

If this deal proceeds, it would reportedly be "the largest leveraged buyout in history."

NYU Stern School of Business professor Joost van Dreunen remarked that for Saudi Arabia's PIF, this would establish gaming as an essential cultural asset akin to sports or film.

The PIF previously held roughly a 10% stake in EA, having acquired over $3 billion in EA, Activision Blizzard, and Take-Two Interactive shares back in 2021. In 2023, it further increased its EA stake by 55%.